Correlation Between Kkr Credit and Finexia Financial
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Finexia 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 Finexia 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 Finexia Financial Group, you can compare the effects of market volatilities on Kkr Credit and Finexia 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 Finexia Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Finexia Financial.
Diversification Opportunities for Kkr Credit and Finexia Financial
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kkr and Finexia is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Finexia Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finexia Financial 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 Finexia Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finexia Financial has no effect on the direction of Kkr Credit i.e., Kkr Credit and Finexia Financial go up and down completely randomly.
Pair Corralation between Kkr Credit and Finexia Financial
Assuming the 90 days trading horizon Kkr Credit Income is expected to generate 0.25 times more return on investment than Finexia Financial. However, Kkr Credit Income is 3.99 times less risky than Finexia Financial. It trades about 0.22 of its potential returns per unit of risk. Finexia Financial Group is currently generating about 0.01 per unit of risk. If you would invest 232.00 in Kkr Credit Income on October 20, 2024 and sell it today you would earn a total of 7.00 from holding Kkr Credit Income or generate 3.02% 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. Finexia Financial Group
Performance |
| Timeline |
| Kkr Credit Income |
| Finexia Financial |
Kkr Credit and Finexia Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Finexia Financial
The main advantage of trading using opposite Kkr Credit and Finexia Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Finexia 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 Finexia Financial will offset losses from the drop in Finexia Financial's long position.| Kkr Credit vs. oOhMedia | Kkr Credit vs. Duketon Mining | Kkr Credit vs. Globe Metals Mining | Kkr Credit vs. Nine Entertainment Co |
| Finexia Financial vs. Bailador Technology Invest | Finexia Financial vs. Retail Food Group | Finexia Financial vs. K2 Asset Management | Finexia Financial vs. Step One Clothing |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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