Correlation Between Kkr Income and Special Opportunities
Can any of the company-specific risk be diversified away by investing in both Kkr Income and Special Opportunities 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 Special Opportunities 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 Special Opportunities Closed, you can compare the effects of market volatilities on Kkr Income and Special Opportunities 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 Special Opportunities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Income and Special Opportunities.
Diversification Opportunities for Kkr Income and Special Opportunities
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kkr and Special is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Income Opportunities and Special Opportunities Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Special Opportunities 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 Special Opportunities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Special Opportunities has no effect on the direction of Kkr Income i.e., Kkr Income and Special Opportunities go up and down completely randomly.
Pair Corralation between Kkr Income and Special Opportunities
Considering the 90-day investment horizon Kkr Income Opportunities is expected to generate 0.85 times more return on investment than Special Opportunities. However, Kkr Income Opportunities is 1.17 times less risky than Special Opportunities. It trades about -0.24 of its potential returns per unit of risk. Special Opportunities Closed is currently generating about -0.23 per unit of risk. If you would invest 1,213 in Kkr Income Opportunities on January 9, 2025 and sell it today you would lose (99.00) from holding Kkr Income Opportunities or give up 8.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kkr Income Opportunities vs. Special Opportunities Closed
Performance |
| Timeline |
| Kkr Income Opportunities |
| Special Opportunities |
Kkr Income and Special Opportunities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Income and Special Opportunities
The main advantage of trading using opposite Kkr Income and Special Opportunities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Income position performs unexpectedly, Special Opportunities 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 Special Opportunities will offset losses from the drop in Special Opportunities' long position.| Kkr Income vs. Nuveen Floating Rate | Kkr Income vs. Eaton Vance Senior | Kkr Income vs. Nuveen Dynamic Municipal | Kkr Income vs. Blackrock Muniyield Quality |
| Special Opportunities vs. Ares Dynamic Credit | Special Opportunities vs. Lazard Global Total | Special Opportunities vs. Principal Real Estate | Special Opportunities vs. Tortoise Capital Series |
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
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |