Correlation Between Kkr Credit and Farm Pride
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Farm Pride 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 Farm Pride 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 Farm Pride Foods, you can compare the effects of market volatilities on Kkr Credit and Farm Pride 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 Farm Pride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Farm Pride.
Diversification Opportunities for Kkr Credit and Farm Pride
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kkr and Farm is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Farm Pride Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farm Pride Foods 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 Farm Pride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farm Pride Foods has no effect on the direction of Kkr Credit i.e., Kkr Credit and Farm Pride go up and down completely randomly.
Pair Corralation between Kkr Credit and Farm Pride
Assuming the 90 days trading horizon Kkr Credit Income is expected to generate 0.16 times more return on investment than Farm Pride. However, Kkr Credit Income is 6.34 times less risky than Farm Pride. It trades about 0.1 of its potential returns per unit of risk. Farm Pride Foods is currently generating about -0.05 per unit of risk. If you would invest 229.00 in Kkr Credit Income on September 13, 2024 and sell it today you would earn a total of 4.00 from holding Kkr Credit Income or generate 1.75% 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. Farm Pride Foods
Performance |
| Timeline |
| Kkr Credit Income |
| Farm Pride Foods |
Kkr Credit and Farm Pride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Farm Pride
The main advantage of trading using opposite Kkr Credit and Farm Pride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Farm Pride 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 Farm Pride will offset losses from the drop in Farm Pride's long position.| Kkr Credit vs. Mayfield Childcare | Kkr Credit vs. Bank of Queensland | Kkr Credit vs. Dexus Convenience Retail | Kkr Credit vs. Pioneer Credit |
| Farm Pride vs. Aneka Tambang Tbk | Farm Pride vs. Macquarie Group | Farm Pride vs. Macquarie Group Ltd | Farm Pride vs. Challenger |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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