Correlation Between Kkr Credit and Iress
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Iress 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 Iress 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 Iress, you can compare the effects of market volatilities on Kkr Credit and Iress 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 Iress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Iress.
Diversification Opportunities for Kkr Credit and Iress
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kkr and Iress is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Iress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iress 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 Iress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iress has no effect on the direction of Kkr Credit i.e., Kkr Credit and Iress go up and down completely randomly.
Pair Corralation between Kkr Credit and Iress
Assuming the 90 days trading horizon Kkr Credit Income is expected to generate 0.36 times more return on investment than Iress. However, Kkr Credit Income is 2.81 times less risky than Iress. It trades about 0.08 of its potential returns per unit of risk. Iress is currently generating about 0.01 per unit of risk. If you would invest 162.00 in Kkr Credit Income on September 12, 2024 and sell it today you would earn a total of 72.00 from holding Kkr Credit Income or generate 44.44% 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. Iress
Performance |
Timeline |
Kkr Credit Income |
Iress |
Kkr Credit and Iress Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kkr Credit and Iress
The main advantage of trading using opposite Kkr Credit and Iress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Iress 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 Iress will offset losses from the drop in Iress' long position.Kkr Credit vs. K2 Asset Management | Kkr Credit vs. Charter Hall Retail | Kkr Credit vs. Pinnacle Investment Management | Kkr Credit vs. REGAL ASIAN INVESTMENTS |
Iress vs. Kkr Credit Income | Iress vs. Magellan Financial Group | Iress vs. Australian Unity Office | Iress vs. Bell Financial Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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