Correlation Between Kkr Credit and Althea Group
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Althea Group 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 Credit and Althea Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kkr Credit Income and Althea Group Holdings, you can compare the effects of market volatilities on Kkr Credit and Althea Group 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 Credit with a short position of Althea Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Althea Group.
Diversification Opportunities for Kkr Credit and Althea Group
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kkr and Althea is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Althea Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Althea Group Holdings and Kkr Credit 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 Credit Income are associated (or correlated) with Althea Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Althea Group Holdings has no effect on the direction of Kkr Credit i.e., Kkr Credit and Althea Group go up and down completely randomly.
Pair Corralation between Kkr Credit and Althea Group
Assuming the 90 days trading horizon Kkr Credit Income is expected to generate 0.19 times more return on investment than Althea Group. However, Kkr Credit Income is 5.32 times less risky than Althea Group. It trades about 0.08 of its potential returns per unit of risk. Althea Group Holdings is currently generating about 0.01 per unit of risk. If you would invest 165.00 in Kkr Credit Income on November 2, 2024 and sell it today you would earn a total of 69.00 from holding Kkr Credit Income or generate 41.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kkr Credit Income vs. Althea Group Holdings
Performance |
| Timeline |
| Kkr Credit Income |
| Althea Group Holdings |
Kkr Credit and Althea Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Althea Group
The main advantage of trading using opposite Kkr Credit and Althea Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Althea Group 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 Althea Group will offset losses from the drop in Althea Group's long position.| Kkr Credit vs. ABACUS STORAGE KING | Kkr Credit vs. Ecofibre | Kkr Credit vs. iShares Global Healthcare | Kkr Credit vs. Adriatic Metals Plc |
| Althea Group vs. Super Retail Group | Althea Group vs. Liberty Financial Group | Althea Group vs. Magellan Financial Group | Althea Group vs. Retail Food Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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