Correlation Between Kkr Credit and LGI
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and LGI 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 LGI 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 LGI, you can compare the effects of market volatilities on Kkr Credit and LGI 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 LGI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and LGI.
Diversification Opportunities for Kkr Credit and LGI
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kkr and LGI is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and LGI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LGI 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 LGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LGI has no effect on the direction of Kkr Credit i.e., Kkr Credit and LGI go up and down completely randomly.
Pair Corralation between Kkr Credit and LGI
Assuming the 90 days trading horizon Kkr Credit Income is expected to under-perform the LGI. But the stock apears to be less risky and, when comparing its historical volatility, Kkr Credit Income is 4.37 times less risky than LGI. The stock trades about -0.06 of its potential returns per unit of risk. The LGI is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 298.00 in LGI on November 1, 2024 and sell it today you would lose (2.00) from holding LGI or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Kkr Credit Income vs. LGI
Performance |
| Timeline |
| Kkr Credit Income |
| LGI |
Kkr Credit and LGI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and LGI
The main advantage of trading using opposite Kkr Credit and LGI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, LGI 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 LGI will offset losses from the drop in LGI's long position.| Kkr Credit vs. Insurance Australia Group | Kkr Credit vs. Charter Hall Education | Kkr Credit vs. Auswide Bank | Kkr Credit vs. Insignia Financial |
| LGI vs. Carnegie Clean Energy | LGI vs. Kkr Credit Income | LGI vs. Wt Financial Group | LGI vs. Charter Hall Education |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |