Correlation Between Iress and Kkr Credit
Can any of the company-specific risk be diversified away by investing in both Iress 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 Iress and Kkr Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iress and Kkr Credit Income, you can compare the effects of market volatilities on Iress 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 Iress with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iress and Kkr Credit.
Diversification Opportunities for Iress and Kkr Credit
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Iress and Kkr is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Iress 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 Iress 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 Iress 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 Iress i.e., Iress and Kkr Credit go up and down completely randomly.
Pair Corralation between Iress and Kkr Credit
Assuming the 90 days trading horizon Iress is expected to under-perform the Kkr Credit. In addition to that, Iress is 1.33 times more volatile than Kkr Credit Income. It trades about -0.48 of its total potential returns per unit of risk. Kkr Credit Income is currently generating about 0.1 per unit of volatility. If you would invest 229.00 in Kkr Credit Income on September 13, 2024 and sell it today you would earn a total of 4.00 from holding Kkr Credit Income or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iress vs. Kkr Credit Income
Performance |
| Timeline |
| Iress |
| Kkr Credit Income |
Iress and Kkr Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iress and Kkr Credit
The main advantage of trading using opposite Iress and Kkr Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iress 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.| Iress vs. Aussie Broadband | Iress vs. Cleanaway Waste Management | Iress vs. Sky Metals | Iress vs. Pinnacle Investment Management |
| Kkr Credit vs. Mayfield Childcare | Kkr Credit vs. Bank of Queensland | Kkr Credit vs. Dexus Convenience Retail | Kkr Credit vs. Pioneer Credit |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |