Correlation Between Finexia Financial and Kkr Credit
Can any of the company-specific risk be diversified away by investing in both Finexia Financial 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 Finexia Financial and Kkr Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finexia Financial Group and Kkr Credit Income, you can compare the effects of market volatilities on Finexia Financial 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 Finexia Financial with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finexia Financial and Kkr Credit.
Diversification Opportunities for Finexia Financial and Kkr Credit
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Finexia and Kkr is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Finexia Financial Group 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 Finexia Financial 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 Finexia Financial Group 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 Finexia Financial i.e., Finexia Financial and Kkr Credit go up and down completely randomly.
Pair Corralation between Finexia Financial and Kkr Credit
Assuming the 90 days trading horizon Finexia Financial Group is expected to generate 4.62 times more return on investment than Kkr Credit. However, Finexia Financial is 4.62 times more volatile than Kkr Credit Income. It trades about 0.04 of its potential returns per unit of risk. Kkr Credit Income is currently generating about 0.06 per unit of risk. If you would invest 26.00 in Finexia Financial Group on September 14, 2024 and sell it today you would earn a total of 5.00 from holding Finexia Financial Group or generate 19.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Finexia Financial Group vs. Kkr Credit Income
Performance |
| Timeline |
| Finexia Financial |
| Kkr Credit Income |
Finexia Financial and Kkr Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finexia Financial and Kkr Credit
The main advantage of trading using opposite Finexia Financial and Kkr Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finexia Financial 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.| Finexia Financial vs. Galena Mining | Finexia Financial vs. Sandon Capital Investments | Finexia Financial vs. Black Rock Mining | Finexia Financial vs. Alternative Investment Trust |
| Kkr Credit vs. Sky Metals | Kkr Credit vs. Bell Financial Group | Kkr Credit vs. Catalyst Metals | Kkr Credit vs. Finexia Financial Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |