Correlation Between Global Star and KKR Co
Can any of the company-specific risk be diversified away by investing in both Global Star 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 Global Star and KKR Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Star Acquisition, and KKR Co LP, you can compare the effects of market volatilities on Global Star 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 Global Star with a short position of KKR Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Star and KKR Co.
Diversification Opportunities for Global Star and KKR Co
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and KKR is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Global Star 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 Global Star 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 Global Star 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 Global Star i.e., Global Star and KKR Co go up and down completely randomly.
Pair Corralation between Global Star and KKR Co
Assuming the 90 days horizon Global Star Acquisition, is expected to generate 6.98 times more return on investment than KKR Co. However, Global Star is 6.98 times more volatile than KKR Co LP. It trades about 0.17 of its potential returns per unit of risk. KKR Co LP is currently generating about 0.16 per unit of risk. If you would invest 2.99 in Global Star Acquisition, on October 25, 2024 and sell it today you would earn a total of 1.01 from holding Global Star Acquisition, or generate 33.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Star Acquisition, vs. KKR Co LP
Performance |
| Timeline |
| Global Star Acquisition, |
| KKR Co LP |
Global Star and KKR Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Star and KKR Co
The main advantage of trading using opposite Global Star and KKR Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Star 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.| Global Star vs. PowerUp Acquisition Corp | Global Star vs. Aquagold International | Global Star vs. Morningstar Unconstrained Allocation | Global Star vs. Thrivent High Yield |
| KKR Co vs. MFS Investment Grade | KKR Co vs. Eaton Vance National | KKR Co vs. Nuveen California Select | KKR Co vs. Federated Premier Municipal |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |