Correlation Between Capital Venture and KKR Co
Can any of the company-specific risk be diversified away by investing in both Capital Venture and KKR Co 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 Capital Venture and KKR Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Venture Europe and KKR Co LP, you can compare the effects of market volatilities on Capital Venture and KKR Co 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 Capital Venture with a short position of KKR Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Venture and KKR Co.
Diversification Opportunities for Capital Venture and KKR Co
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capital and KKR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Capital Venture Europe and KKR Co LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KKR Co LP and Capital Venture 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 Capital Venture Europe are associated (or correlated) with KKR Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KKR Co LP has no effect on the direction of Capital Venture i.e., Capital Venture and KKR Co go up and down completely randomly.
Pair Corralation between Capital Venture and KKR Co
Assuming the 90 days horizon Capital Venture Europe is expected to under-perform the KKR Co. But the pink sheet apears to be less risky and, when comparing its historical volatility, Capital Venture Europe is 8.5 times less risky than KKR Co. The pink sheet trades about -0.05 of its potential returns per unit of risk. The KKR Co LP is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 5,296 in KKR Co LP on October 13, 2024 and sell it today you would earn a total of 8,797 from holding KKR Co LP or generate 166.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 84.07% |
| Values | Daily Returns |
Capital Venture Europe vs. KKR Co LP
Performance |
| Timeline |
| Capital Venture Europe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| KKR Co LP |
Capital Venture and KKR Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Venture and KKR Co
The main advantage of trading using opposite Capital Venture and KKR Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Venture position performs unexpectedly, KKR Co 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 Co will offset losses from the drop in KKR Co's long position.| Capital Venture vs. 1812 Brewing | Capital Venture vs. Suntex Enterprises | Capital Venture vs. Eat Well Investment | Capital Venture vs. SMC Entertainment |
| KKR Co vs. Carlyle Group | KKR Co vs. Ares Management LP | KKR Co vs. Blackstone Group | KKR Co vs. Blue Owl Capital |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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