Correlation Between Kkr Credit and BKI Investment
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and BKI Investment 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 BKI Investment 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 BKI Investment, you can compare the effects of market volatilities on Kkr Credit and BKI Investment 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 BKI Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and BKI Investment.
Diversification Opportunities for Kkr Credit and BKI Investment
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kkr and BKI is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and BKI Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKI Investment 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 BKI Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BKI Investment has no effect on the direction of Kkr Credit i.e., Kkr Credit and BKI Investment go up and down completely randomly.
Pair Corralation between Kkr Credit and BKI Investment
Assuming the 90 days trading horizon Kkr Credit is expected to generate 30.35 times less return on investment than BKI Investment. But when comparing it to its historical volatility, Kkr Credit Income is 1.43 times less risky than BKI Investment. It trades about 0.0 of its potential returns per unit of risk. BKI Investment is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 167.00 in BKI Investment on November 7, 2024 and sell it today you would earn a total of 2.00 from holding BKI Investment or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kkr Credit Income vs. BKI Investment
Performance |
| Timeline |
| Kkr Credit Income |
| BKI Investment |
Kkr Credit and BKI Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and BKI Investment
The main advantage of trading using opposite Kkr Credit and BKI Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, BKI Investment 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 BKI Investment will offset losses from the drop in BKI Investment's long position.| Kkr Credit vs. Westpac Banking | Kkr Credit vs. ABACUS STORAGE KING | Kkr Credit vs. Odyssey Energy | Kkr Credit vs. BSP Financial Group |
| BKI Investment vs. Beam Communications Holdings | BKI Investment vs. Health and Plant | BKI Investment vs. Maggie Beer Holdings | BKI Investment vs. Cleanaway Waste Management |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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