Correlation Between Distoken Acquisition and KKR Co
Can any of the company-specific risk be diversified away by investing in both Distoken Acquisition 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 Distoken Acquisition and KKR Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Distoken Acquisition and KKR Co LP, you can compare the effects of market volatilities on Distoken Acquisition 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 Distoken Acquisition with a short position of KKR Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Distoken Acquisition and KKR Co.
Diversification Opportunities for Distoken Acquisition and KKR Co
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Distoken and KKR is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Distoken Acquisition 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 Distoken Acquisition 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 Distoken Acquisition 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 Distoken Acquisition i.e., Distoken Acquisition and KKR Co go up and down completely randomly.
Pair Corralation between Distoken Acquisition and KKR Co
Given the investment horizon of 90 days Distoken Acquisition is expected to generate 5.23 times less return on investment than KKR Co. But when comparing it to its historical volatility, Distoken Acquisition is 4.98 times less risky than KKR Co. It trades about 0.24 of its potential returns per unit of risk. KKR Co LP is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 14,057 in KKR Co LP on August 28, 2024 and sell it today you would earn a total of 1,837 from holding KKR Co LP or generate 13.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Distoken Acquisition vs. KKR Co LP
Performance |
| Timeline |
| Distoken Acquisition |
| KKR Co LP |
Distoken Acquisition and KKR Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Distoken Acquisition and KKR Co
The main advantage of trading using opposite Distoken Acquisition and KKR Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Distoken Acquisition 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.| Distoken Acquisition vs. PowerUp Acquisition Corp | Distoken Acquisition vs. Aurora Innovation | Distoken Acquisition vs. HUMANA INC | Distoken Acquisition vs. Aquagold International |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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