Correlation Between FS KKR and Oaktree Specialty
Can any of the company-specific risk be diversified away by investing in both FS KKR and Oaktree Specialty 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 FS KKR and Oaktree Specialty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FS KKR Capital and Oaktree Specialty Lending, you can compare the effects of market volatilities on FS KKR and Oaktree Specialty 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 FS KKR with a short position of Oaktree Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of FS KKR and Oaktree Specialty.
Diversification Opportunities for FS KKR and Oaktree Specialty
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FSK and Oaktree is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding FS KKR Capital and Oaktree Specialty Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oaktree Specialty Lending and FS KKR 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 FS KKR Capital are associated (or correlated) with Oaktree Specialty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oaktree Specialty Lending has no effect on the direction of FS KKR i.e., FS KKR and Oaktree Specialty go up and down completely randomly.
Pair Corralation between FS KKR and Oaktree Specialty
Considering the 90-day investment horizon FS KKR Capital is expected to generate 0.77 times more return on investment than Oaktree Specialty. However, FS KKR Capital is 1.3 times less risky than Oaktree Specialty. It trades about 0.13 of its potential returns per unit of risk. Oaktree Specialty Lending is currently generating about -0.08 per unit of risk. If you would invest 1,930 in FS KKR Capital on September 1, 2024 and sell it today you would earn a total of 292.00 from holding FS KKR Capital or generate 15.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FS KKR Capital vs. Oaktree Specialty Lending
Performance |
| Timeline |
| FS KKR Capital |
| Oaktree Specialty Lending |
FS KKR and Oaktree Specialty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FS KKR and Oaktree Specialty
The main advantage of trading using opposite FS KKR and Oaktree Specialty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FS KKR position performs unexpectedly, Oaktree Specialty 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 Oaktree Specialty will offset losses from the drop in Oaktree Specialty's long position.| FS KKR vs. BlackRock TCP Capital | FS KKR vs. Triplepoint Venture Growth | FS KKR vs. Sixth Street Specialty | FS KKR vs. Golub Capital BDC |
| Oaktree Specialty vs. Barings BDC | Oaktree Specialty vs. OneMain Holdings | Oaktree Specialty vs. Runway Growth Finance | Oaktree Specialty vs. Ally Financial |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |