Correlation Between Collins Foods and Kkr Credit
Can any of the company-specific risk be diversified away by investing in both Collins Foods 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 Collins Foods and Kkr Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Collins Foods and Kkr Credit Income, you can compare the effects of market volatilities on Collins Foods 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 Collins Foods with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Collins Foods and Kkr Credit.
Diversification Opportunities for Collins Foods and Kkr Credit
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Collins and Kkr is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Collins Foods 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 Collins Foods 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 Collins Foods 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 Collins Foods i.e., Collins Foods and Kkr Credit go up and down completely randomly.
Pair Corralation between Collins Foods and Kkr Credit
Assuming the 90 days trading horizon Collins Foods is expected to under-perform the Kkr Credit. In addition to that, Collins Foods is 1.91 times more volatile than Kkr Credit Income. It trades about -0.01 of its total potential returns per unit of risk. Kkr Credit Income is currently generating about 0.09 per unit of volatility. If you would invest 226.00 in Kkr Credit Income on September 12, 2024 and sell it today you would earn a total of 8.00 from holding Kkr Credit Income or generate 3.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Collins Foods vs. Kkr Credit Income
Performance |
| Timeline |
| Collins Foods |
| Kkr Credit Income |
Collins Foods and Kkr Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Collins Foods and Kkr Credit
The main advantage of trading using opposite Collins Foods and Kkr Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Collins Foods 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.| Collins Foods vs. Homeco Daily Needs | Collins Foods vs. Australian Unity Office | Collins Foods vs. Farm Pride Foods | Collins Foods vs. Viva Leisure |
| Kkr Credit vs. K2 Asset Management | Kkr Credit vs. Charter Hall Retail | Kkr Credit vs. Pinnacle Investment Management | Kkr Credit vs. REGAL ASIAN INVESTMENTS |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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