Correlation Between Kkr Credit and Home Consortium
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Home Consortium 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 Home Consortium 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 Home Consortium, you can compare the effects of market volatilities on Kkr Credit and Home Consortium 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 Home Consortium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Home Consortium.
Diversification Opportunities for Kkr Credit and Home Consortium
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kkr and Home is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Home Consortium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Consortium 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 Home Consortium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Consortium has no effect on the direction of Kkr Credit i.e., Kkr Credit and Home Consortium go up and down completely randomly.
Pair Corralation between Kkr Credit and Home Consortium
Assuming the 90 days trading horizon Kkr Credit Income is expected to under-perform the Home Consortium. But the stock apears to be less risky and, when comparing its historical volatility, Kkr Credit Income is 1.83 times less risky than Home Consortium. The stock trades about -0.07 of its potential returns per unit of risk. The Home Consortium is currently generating about 0.62 of returns per unit of risk over similar time horizon. If you would invest 1,013 in Home Consortium on August 29, 2024 and sell it today you would earn a total of 214.00 from holding Home Consortium or generate 21.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kkr Credit Income vs. Home Consortium
Performance |
| Timeline |
| Kkr Credit Income |
| Home Consortium |
Kkr Credit and Home Consortium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Home Consortium
The main advantage of trading using opposite Kkr Credit and Home Consortium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Home Consortium 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 Home Consortium will offset losses from the drop in Home Consortium's long position.| Kkr Credit vs. ABACUS STORAGE KING | Kkr Credit vs. Odyssey Energy | Kkr Credit vs. Champion Iron | Kkr Credit vs. Ridley |
| Home Consortium vs. Queste Communications | Home Consortium vs. Ras Technology Holdings | Home Consortium vs. Advanced Braking Technology | Home Consortium 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |