Correlation Between FS KKR and PowerUp Acquisition
Can any of the company-specific risk be diversified away by investing in both FS KKR and PowerUp Acquisition 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 PowerUp Acquisition 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 PowerUp Acquisition Corp, you can compare the effects of market volatilities on FS KKR and PowerUp Acquisition 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 PowerUp Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of FS KKR and PowerUp Acquisition.
Diversification Opportunities for FS KKR and PowerUp Acquisition
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between FSK and PowerUp is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding FS KKR Capital and PowerUp Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerUp Acquisition Corp 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 PowerUp Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerUp Acquisition Corp has no effect on the direction of FS KKR i.e., FS KKR and PowerUp Acquisition go up and down completely randomly.
Pair Corralation between FS KKR and PowerUp Acquisition
Considering the 90-day investment horizon FS KKR Capital is expected to generate 0.69 times more return on investment than PowerUp Acquisition. However, FS KKR Capital is 1.45 times less risky than PowerUp Acquisition. It trades about 0.09 of its potential returns per unit of risk. PowerUp Acquisition Corp is currently generating about 0.02 per unit of risk. If you would invest 1,393 in FS KKR Capital on August 27, 2024 and sell it today you would earn a total of 784.00 from holding FS KKR Capital or generate 56.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FS KKR Capital vs. PowerUp Acquisition Corp
Performance |
| Timeline |
| FS KKR Capital |
| PowerUp Acquisition Corp |
FS KKR and PowerUp Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FS KKR and PowerUp Acquisition
The main advantage of trading using opposite FS KKR and PowerUp Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FS KKR position performs unexpectedly, PowerUp Acquisition 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 PowerUp Acquisition will offset losses from the drop in PowerUp Acquisition's long position.| FS KKR vs. PowerUp Acquisition Corp | FS KKR vs. Aurora Innovation | FS KKR vs. HUMANA INC | FS KKR vs. Aquagold International |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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