Correlation Between Eat Well and KKR Co
Can any of the company-specific risk be diversified away by investing in both Eat Well 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 Eat Well and KKR Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eat Well Investment and KKR Co LP, you can compare the effects of market volatilities on Eat Well 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 Eat Well with a short position of KKR Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eat Well and KKR Co.
Diversification Opportunities for Eat Well and KKR Co
Significant diversification
The 3 months correlation between Eat and KKR is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Eat Well Investment 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 Eat Well 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 Eat Well Investment 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 Eat Well i.e., Eat Well and KKR Co go up and down completely randomly.
Pair Corralation between Eat Well and KKR Co
Assuming the 90 days horizon Eat Well Investment is expected to generate 28.76 times more return on investment than KKR Co. However, Eat Well is 28.76 times more volatile than KKR Co LP. It trades about 0.07 of its potential returns per unit of risk. KKR Co LP is currently generating about 0.11 per unit of risk. If you would invest 16.00 in Eat Well Investment on October 13, 2024 and sell it today you would lose (15.00) from holding Eat Well Investment or give up 93.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eat Well Investment vs. KKR Co LP
Performance |
| Timeline |
| Eat Well Investment |
| KKR Co LP |
Eat Well and KKR Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eat Well and KKR Co
The main advantage of trading using opposite Eat Well and KKR Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eat Well 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.| Eat Well vs. Flow Capital Corp | Eat Well vs. Guardian Capital Group | Eat Well vs. Urbana | Eat Well vs. Princeton Capital |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |