Correlation Between Kkr Credit and Maggie Beer
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Maggie Beer 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 Maggie Beer 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 Maggie Beer Holdings, you can compare the effects of market volatilities on Kkr Credit and Maggie Beer 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 Maggie Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Maggie Beer.
Diversification Opportunities for Kkr Credit and Maggie Beer
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kkr and Maggie is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Maggie Beer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maggie Beer Holdings 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 Maggie Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maggie Beer Holdings has no effect on the direction of Kkr Credit i.e., Kkr Credit and Maggie Beer go up and down completely randomly.
Pair Corralation between Kkr Credit and Maggie Beer
Assuming the 90 days trading horizon Kkr Credit is expected to generate 204.15 times less return on investment than Maggie Beer. But when comparing it to its historical volatility, Kkr Credit Income is 5.07 times less risky than Maggie Beer. It trades about 0.0 of its potential returns per unit of risk. Maggie Beer Holdings is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5.70 in Maggie Beer Holdings on November 7, 2024 and sell it today you would earn a total of 0.40 from holding Maggie Beer Holdings or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Kkr Credit Income vs. Maggie Beer Holdings
Performance |
| Timeline |
| Kkr Credit Income |
| Maggie Beer Holdings |
Kkr Credit and Maggie Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Maggie Beer
The main advantage of trading using opposite Kkr Credit and Maggie Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Maggie Beer 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 Maggie Beer will offset losses from the drop in Maggie Beer's long position.| Kkr Credit vs. Westpac Banking | Kkr Credit vs. Iron Road | Kkr Credit vs. Latitude Financial Services | Kkr Credit vs. The Environmental Group |
| Maggie Beer vs. Mach7 Technologies | Maggie Beer vs. Rare Foods Australia | Maggie Beer vs. Advanced Braking Technology | Maggie Beer vs. Sports Entertainment 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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