Correlation Between Kkr Credit and Kip McGrath
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Kip McGrath 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 Kip McGrath 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 Kip McGrath Education, you can compare the effects of market volatilities on Kkr Credit and Kip McGrath 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 Kip McGrath. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Kip McGrath.
Diversification Opportunities for Kkr Credit and Kip McGrath
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kkr and Kip is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Kip McGrath Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kip McGrath Education 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 Kip McGrath. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kip McGrath Education has no effect on the direction of Kkr Credit i.e., Kkr Credit and Kip McGrath go up and down completely randomly.
Pair Corralation between Kkr Credit and Kip McGrath
Assuming the 90 days trading horizon Kkr Credit Income is expected to under-perform the Kip McGrath. But the stock apears to be less risky and, when comparing its historical volatility, Kkr Credit Income is 2.87 times less risky than Kip McGrath. The stock trades about -0.07 of its potential returns per unit of risk. The Kip McGrath Education is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 41.00 in Kip McGrath Education on August 29, 2024 and sell it today you would earn a total of 8.00 from holding Kip McGrath Education or generate 19.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kkr Credit Income vs. Kip McGrath Education
Performance |
| Timeline |
| Kkr Credit Income |
| Kip McGrath Education |
Kkr Credit and Kip McGrath Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Kip McGrath
The main advantage of trading using opposite Kkr Credit and Kip McGrath positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Kip McGrath 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 Kip McGrath will offset losses from the drop in Kip McGrath's long position.| Kkr Credit vs. Australian Unity Office | Kkr Credit vs. Kip McGrath Education | Kkr Credit vs. Thorney Technologies | Kkr Credit vs. Qbe Insurance Group |
| Kip McGrath vs. Aneka Tambang Tbk | Kip McGrath vs. BHP Group Limited | Kip McGrath vs. Rio Tinto | Kip McGrath vs. Macquarie Group Ltd |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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