Correlation Between Kkr Credit and Cosmo Metals
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Cosmo Metals 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 Cosmo Metals 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 Cosmo Metals, you can compare the effects of market volatilities on Kkr Credit and Cosmo Metals 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 Cosmo Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Cosmo Metals.
Diversification Opportunities for Kkr Credit and Cosmo Metals
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kkr and Cosmo is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Cosmo Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmo Metals 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 Cosmo Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmo Metals has no effect on the direction of Kkr Credit i.e., Kkr Credit and Cosmo Metals go up and down completely randomly.
Pair Corralation between Kkr Credit and Cosmo Metals
Assuming the 90 days trading horizon Kkr Credit Income is expected to generate 0.31 times more return on investment than Cosmo Metals. However, Kkr Credit Income is 3.25 times less risky than Cosmo Metals. It trades about 0.0 of its potential returns per unit of risk. Cosmo Metals is currently generating about -0.32 per unit of risk. If you would invest 235.00 in Kkr Credit Income on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Kkr Credit Income or generate 0.0% 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. Cosmo Metals
Performance |
| Timeline |
| Kkr Credit Income |
| Cosmo Metals |
Kkr Credit and Cosmo Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Cosmo Metals
The main advantage of trading using opposite Kkr Credit and Cosmo Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Cosmo Metals 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 Cosmo Metals will offset losses from the drop in Cosmo Metals' long position.| Kkr Credit vs. Saferoads Holdings | Kkr Credit vs. Qbe Insurance Group | Kkr Credit vs. Insignia Financial | Kkr Credit vs. Retail Food Group |
| Cosmo Metals vs. Liberty Financial Group | Cosmo Metals vs. Ora Banda Mining | Cosmo Metals vs. Auswide Bank | Cosmo Metals vs. Kkr Credit Income |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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