Correlation Between Kkr Income and Tekla Healthcare
Can any of the company-specific risk be diversified away by investing in both Kkr Income and Tekla Healthcare 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 Kkr Income and Tekla Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kkr Income Opportunities and Tekla Healthcare Investors, you can compare the effects of market volatilities on Kkr Income and Tekla Healthcare 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 Kkr Income with a short position of Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Income and Tekla Healthcare.
Diversification Opportunities for Kkr Income and Tekla Healthcare
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kkr and Tekla is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Income Opportunities and Tekla Healthcare Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekla Healthcare Inv and Kkr Income 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 Kkr Income Opportunities are associated (or correlated) with Tekla Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekla Healthcare Inv has no effect on the direction of Kkr Income i.e., Kkr Income and Tekla Healthcare go up and down completely randomly.
Pair Corralation between Kkr Income and Tekla Healthcare
Considering the 90-day investment horizon Kkr Income Opportunities is expected to generate 0.83 times more return on investment than Tekla Healthcare. However, Kkr Income Opportunities is 1.21 times less risky than Tekla Healthcare. It trades about 0.1 of its potential returns per unit of risk. Tekla Healthcare Investors is currently generating about 0.02 per unit of risk. If you would invest 908.00 in Kkr Income Opportunities on September 3, 2024 and sell it today you would earn a total of 431.00 from holding Kkr Income Opportunities or generate 47.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kkr Income Opportunities vs. Tekla Healthcare Investors
Performance |
| Timeline |
| Kkr Income Opportunities |
| Tekla Healthcare Inv |
Kkr Income and Tekla Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Income and Tekla Healthcare
The main advantage of trading using opposite Kkr Income and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Income position performs unexpectedly, Tekla Healthcare 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 Tekla Healthcare will offset losses from the drop in Tekla Healthcare's long position.| Kkr Income vs. Tekla Healthcare Investors | Kkr Income vs. Tekla Life Sciences | Kkr Income vs. Cohen Steers Reit | Kkr Income vs. XAI Octagon Floating |
| Tekla Healthcare vs. Tekla Healthcare Opportunities | Tekla Healthcare vs. Eaton Vance Tax | Tekla Healthcare vs. Tekla World Healthcare | Tekla Healthcare vs. Cohen Steers Limited |
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..
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