Correlation Between Kkr Credit and Bank of Queensland
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Bank of Queensland 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 Bank of Queensland 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 Bank of Queensland, you can compare the effects of market volatilities on Kkr Credit and Bank of Queensland 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 Bank of Queensland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Bank of Queensland.
Diversification Opportunities for Kkr Credit and Bank of Queensland
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kkr and Bank is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Bank of Queensland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Queensland 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 Bank of Queensland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Queensland has no effect on the direction of Kkr Credit i.e., Kkr Credit and Bank of Queensland go up and down completely randomly.
Pair Corralation between Kkr Credit and Bank of Queensland
Assuming the 90 days trading horizon Kkr Credit Income is expected to generate 2.06 times more return on investment than Bank of Queensland. However, Kkr Credit is 2.06 times more volatile than Bank of Queensland. It trades about 0.07 of its potential returns per unit of risk. Bank of Queensland is currently generating about 0.07 per unit of risk. If you would invest 204.00 in Kkr Credit Income on September 20, 2024 and sell it today you would earn a total of 30.00 from holding Kkr Credit Income or generate 14.71% 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. Bank of Queensland
Performance |
| Timeline |
| Kkr Credit Income |
| Bank of Queensland |
Kkr Credit and Bank of Queensland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Bank of Queensland
The main advantage of trading using opposite Kkr Credit and Bank of Queensland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Bank of Queensland 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 Bank of Queensland will offset losses from the drop in Bank of Queensland's long position.| Kkr Credit vs. Westpac Banking | Kkr Credit vs. ABACUS STORAGE KING | Kkr Credit vs. Odyssey Energy | Kkr Credit vs. Sims |
| Bank of Queensland vs. Mystate | Bank of Queensland vs. Telix Pharmaceuticals | Bank of Queensland vs. Bisalloy Steel Group | Bank of Queensland vs. MoneyMe |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |