Correlation Between Carlton Investments and Kkr Credit
Can any of the company-specific risk be diversified away by investing in both Carlton Investments 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 Carlton Investments and Kkr Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlton Investments and Kkr Credit Income, you can compare the effects of market volatilities on Carlton Investments 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 Carlton Investments with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlton Investments and Kkr Credit.
Diversification Opportunities for Carlton Investments and Kkr Credit
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carlton and Kkr is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Carlton Investments 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 Carlton Investments 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 Carlton Investments 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 Carlton Investments i.e., Carlton Investments and Kkr Credit go up and down completely randomly.
Pair Corralation between Carlton Investments and Kkr Credit
Assuming the 90 days trading horizon Carlton Investments is expected to generate 1.01 times more return on investment than Kkr Credit. However, Carlton Investments is 1.01 times more volatile than Kkr Credit Income. It trades about 0.22 of its potential returns per unit of risk. Kkr Credit Income is currently generating about -0.06 per unit of risk. If you would invest 3,015 in Carlton Investments on October 29, 2024 and sell it today you would earn a total of 85.00 from holding Carlton Investments or generate 2.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlton Investments vs. Kkr Credit Income
Performance |
| Timeline |
| Carlton Investments |
| Kkr Credit Income |
Carlton Investments and Kkr Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlton Investments and Kkr Credit
The main advantage of trading using opposite Carlton Investments and Kkr Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlton Investments 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.| Carlton Investments vs. Charter Hall Retail | Carlton Investments vs. MetalsGrove Mining | Carlton Investments vs. TPG Telecom | Carlton Investments vs. Aeon Metals |
| Kkr Credit vs. BKI Investment | Kkr Credit vs. Navigator Global Investments | Kkr Credit vs. Duketon Mining | Kkr Credit vs. Steamships Trading |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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