Correlation Between Kkr Credit and Bell Financial
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Bell Financial 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 Bell Financial 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 Bell Financial Group, you can compare the effects of market volatilities on Kkr Credit and Bell Financial 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 Bell Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Bell Financial.
Diversification Opportunities for Kkr Credit and Bell Financial
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kkr and Bell is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Bell Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bell Financial Group 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 Bell Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bell Financial Group has no effect on the direction of Kkr Credit i.e., Kkr Credit and Bell Financial go up and down completely randomly.
Pair Corralation between Kkr Credit and Bell Financial
Assuming the 90 days trading horizon Kkr Credit is expected to generate 3.73 times less return on investment than Bell Financial. But when comparing it to its historical volatility, Kkr Credit Income is 2.9 times less risky than Bell Financial. It trades about 0.1 of its potential returns per unit of risk. Bell Financial Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 126.00 in Bell Financial Group on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Bell Financial Group or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kkr Credit Income vs. Bell Financial Group
Performance |
| Timeline |
| Kkr Credit Income |
| Bell Financial Group |
Kkr Credit and Bell Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Bell Financial
The main advantage of trading using opposite Kkr Credit and Bell Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Bell Financial 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 Bell Financial will offset losses from the drop in Bell Financial's long position.| Kkr Credit vs. Mayfield Childcare | Kkr Credit vs. Bank of Queensland | Kkr Credit vs. Dexus Convenience Retail | Kkr Credit vs. Pioneer Credit |
| Bell Financial vs. Retail Food Group | Bell Financial vs. Fisher Paykel Healthcare | Bell Financial vs. Austco Healthcare | Bell Financial vs. Healthco Healthcare and |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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