Correlation Between Kkr Credit and Lendlease
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Lendlease 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 Lendlease 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 Lendlease Group, you can compare the effects of market volatilities on Kkr Credit and Lendlease 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 Lendlease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Lendlease.
Diversification Opportunities for Kkr Credit and Lendlease
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kkr and Lendlease is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Lendlease Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendlease Group 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 Lendlease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendlease Group has no effect on the direction of Kkr Credit i.e., Kkr Credit and Lendlease go up and down completely randomly.
Pair Corralation between Kkr Credit and Lendlease
Assuming the 90 days trading horizon Kkr Credit Income is expected to generate 0.5 times more return on investment than Lendlease. However, Kkr Credit Income is 1.99 times less risky than Lendlease. It trades about 0.11 of its potential returns per unit of risk. Lendlease Group is currently generating about 0.01 per unit of risk. If you would invest 160.00 in Kkr Credit Income on August 31, 2024 and sell it today you would earn a total of 71.00 from holding Kkr Credit Income or generate 44.38% 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. Lendlease Group
Performance |
| Timeline |
| Kkr Credit Income |
| Lendlease Group |
Kkr Credit and Lendlease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Lendlease
The main advantage of trading using opposite Kkr Credit and Lendlease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Lendlease 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 Lendlease will offset losses from the drop in Lendlease's long position.| Kkr Credit vs. Westpac Banking | Kkr Credit vs. Odyssey Energy | Kkr Credit vs. Ecofibre | Kkr Credit vs. iShares Global Healthcare |
| Lendlease vs. Diversified United Investment | Lendlease vs. Aeon Metals | Lendlease vs. REGAL ASIAN INVESTMENTS | Lendlease vs. MFF Capital Investments |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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