Correlation Between Kkr Credit and Insurance Australia
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Insurance Australia 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 Insurance Australia 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 Insurance Australia Group, you can compare the effects of market volatilities on Kkr Credit and Insurance Australia 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 Insurance Australia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Insurance Australia.
Diversification Opportunities for Kkr Credit and Insurance Australia
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kkr and Insurance is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Insurance Australia Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insurance Australia 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 Insurance Australia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insurance Australia has no effect on the direction of Kkr Credit i.e., Kkr Credit and Insurance Australia go up and down completely randomly.
Pair Corralation between Kkr Credit and Insurance Australia
Assuming the 90 days trading horizon Kkr Credit Income is expected to under-perform the Insurance Australia. But the stock apears to be less risky and, when comparing its historical volatility, Kkr Credit Income is 1.82 times less risky than Insurance Australia. The stock trades about -0.02 of its potential returns per unit of risk. The Insurance Australia Group is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 750.00 in Insurance Australia Group on September 1, 2024 and sell it today you would earn a total of 103.00 from holding Insurance Australia Group or generate 13.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kkr Credit Income vs. Insurance Australia Group
Performance |
| Timeline |
| Kkr Credit Income |
| Insurance Australia |
Kkr Credit and Insurance Australia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Insurance Australia
The main advantage of trading using opposite Kkr Credit and Insurance Australia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Insurance Australia 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 Insurance Australia will offset losses from the drop in Insurance Australia's long position.| Kkr Credit vs. Iron Road | Kkr Credit vs. Phoslock Environmental Technologies | Kkr Credit vs. Green Technology Metals | Kkr Credit vs. Legacy Iron Ore |
| Insurance Australia vs. Macquarie Bank Limited | Insurance Australia vs. Computershare | Insurance Australia vs. Ras Technology Holdings | Insurance Australia 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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