Correlation Between BKI Investment and Kkr Credit
Can any of the company-specific risk be diversified away by investing in both BKI Investment and Kkr Credit at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BKI Investment and Kkr Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BKI Investment and Kkr Credit Income, you can compare the effects of market volatilities on BKI Investment and Kkr Credit and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BKI Investment with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of BKI Investment and Kkr Credit.
Diversification Opportunities for BKI Investment and Kkr Credit
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between BKI and Kkr is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding BKI Investment and Kkr Credit Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kkr Credit Income and BKI Investment is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on BKI Investment are associated (or correlated) with Kkr Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kkr Credit Income has no effect on the direction of BKI Investment i.e., BKI Investment and Kkr Credit go up and down completely randomly.
Pair Corralation between BKI Investment and Kkr Credit
Assuming the 90 days trading horizon BKI Investment is expected to generate 5.18 times less return on investment than Kkr Credit. In addition to that, BKI Investment is 1.26 times more volatile than Kkr Credit Income. It trades about 0.02 of its total potential returns per unit of risk. Kkr Credit Income is currently generating about 0.1 per unit of volatility. If you would invest 217.00 in Kkr Credit Income on November 7, 2024 and sell it today you would earn a total of 18.00 from holding Kkr Credit Income or generate 8.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BKI Investment vs. Kkr Credit Income
Performance |
| Timeline |
| BKI Investment |
| Kkr Credit Income |
BKI Investment and Kkr Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BKI Investment and Kkr Credit
The main advantage of trading using opposite BKI Investment and Kkr Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BKI Investment position performs unexpectedly, Kkr Credit can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kkr Credit will offset losses from the drop in Kkr Credit's long position.| BKI Investment vs. Beam Communications Holdings | BKI Investment vs. Health and Plant | BKI Investment vs. Maggie Beer Holdings | BKI Investment vs. Cleanaway Waste Management |
| Kkr Credit vs. Westpac Banking | Kkr Credit vs. ABACUS STORAGE KING | Kkr Credit vs. Odyssey Energy | Kkr Credit vs. BSP Financial Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |