Correlation Between Champion Iron and Kkr Credit
Can any of the company-specific risk be diversified away by investing in both Champion Iron 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 Champion Iron and Kkr Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champion Iron and Kkr Credit Income, you can compare the effects of market volatilities on Champion Iron 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 Champion Iron with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champion Iron and Kkr Credit.
Diversification Opportunities for Champion Iron and Kkr Credit
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Champion and Kkr is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Champion Iron 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 Champion Iron 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 Champion Iron 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 Champion Iron i.e., Champion Iron and Kkr Credit go up and down completely randomly.
Pair Corralation between Champion Iron and Kkr Credit
Assuming the 90 days trading horizon Champion Iron is expected to under-perform the Kkr Credit. In addition to that, Champion Iron is 3.37 times more volatile than Kkr Credit Income. It trades about -0.08 of its total potential returns per unit of risk. Kkr Credit Income is currently generating about -0.07 per unit of volatility. If you would invest 233.00 in Kkr Credit Income on August 29, 2024 and sell it today you would lose (3.00) from holding Kkr Credit Income or give up 1.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Champion Iron vs. Kkr Credit Income
Performance |
| Timeline |
| Champion Iron |
| Kkr Credit Income |
Champion Iron and Kkr Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champion Iron and Kkr Credit
The main advantage of trading using opposite Champion Iron and Kkr Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champion Iron 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.| Champion Iron vs. Future Generation Global | Champion Iron vs. Rubicon Water | Champion Iron vs. Kinatico | Champion Iron vs. Jade Gas Holdings |
| Kkr Credit vs. ABACUS STORAGE KING | Kkr Credit vs. Odyssey Energy | Kkr Credit vs. Champion Iron | Kkr Credit vs. Ridley |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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