Correlation Between Kkr Credit and CSL
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and CSL 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 CSL 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 CSL, you can compare the effects of market volatilities on Kkr Credit and CSL 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 CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and CSL.
Diversification Opportunities for Kkr Credit and CSL
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kkr and CSL is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and CSL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL 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 CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL has no effect on the direction of Kkr Credit i.e., Kkr Credit and CSL go up and down completely randomly.
Pair Corralation between Kkr Credit and CSL
Assuming the 90 days trading horizon Kkr Credit Income is expected to under-perform the CSL. But the stock apears to be less risky and, when comparing its historical volatility, Kkr Credit Income is 1.37 times less risky than CSL. The stock trades about -0.05 of its potential returns per unit of risk. The CSL is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 28,162 in CSL on September 2, 2024 and sell it today you would earn a total of 60.00 from holding CSL or generate 0.21% 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. CSL
Performance |
| Timeline |
| Kkr Credit Income |
| CSL |
Kkr Credit and CSL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and CSL
The main advantage of trading using opposite Kkr Credit and CSL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, CSL 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 CSL will offset losses from the drop in CSL's long position.| Kkr Credit vs. ABACUS STORAGE KING | Kkr Credit vs. Midway | Kkr Credit vs. Aristocrat Leisure | Kkr Credit vs. Imricor Medical Systems |
| CSL vs. REGAL ASIAN INVESTMENTS | CSL vs. Argo Investments | CSL vs. Hudson Investment Group | CSL vs. Mayfield Childcare |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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