Correlation Between Clime Investment and Kkr Credit
Can any of the company-specific risk be diversified away by investing in both Clime 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 Clime 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 Clime Investment Management and Kkr Credit Income, you can compare the effects of market volatilities on Clime 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 Clime Investment with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clime Investment and Kkr Credit.
Diversification Opportunities for Clime Investment and Kkr Credit
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Clime and Kkr is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Clime Investment Management 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 Clime 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 Clime Investment Management 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 Clime Investment i.e., Clime Investment and Kkr Credit go up and down completely randomly.
Pair Corralation between Clime Investment and Kkr Credit
Assuming the 90 days trading horizon Clime Investment Management is expected to under-perform the Kkr Credit. But the stock apears to be less risky and, when comparing its historical volatility, Clime Investment Management is 1.03 times less risky than Kkr Credit. The stock trades about -0.22 of its potential returns per unit of risk. The Kkr Credit Income is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 238.00 in Kkr Credit Income on October 29, 2024 and sell it today you would lose (2.00) from holding Kkr Credit Income or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clime Investment Management vs. Kkr Credit Income
Performance |
| Timeline |
| Clime Investment Man |
| Kkr Credit Income |
Clime Investment and Kkr Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clime Investment and Kkr Credit
The main advantage of trading using opposite Clime Investment and Kkr Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clime 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.| Clime Investment vs. Saferoads Holdings | Clime Investment vs. M3 Mining | Clime Investment vs. Peel Mining | Clime Investment vs. Ora Banda Mining |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |