Correlation Between Kkr Credit and Magellan Financial
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Magellan Financial 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 Magellan Financial 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 Magellan Financial Group, you can compare the effects of market volatilities on Kkr Credit and Magellan Financial 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 Magellan Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Magellan Financial.
Diversification Opportunities for Kkr Credit and Magellan Financial
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kkr and Magellan is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Magellan Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magellan Financial 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 Magellan Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magellan Financial has no effect on the direction of Kkr Credit i.e., Kkr Credit and Magellan Financial go up and down completely randomly.
Pair Corralation between Kkr Credit and Magellan Financial
Assuming the 90 days trading horizon Kkr Credit Income is expected to generate 0.52 times more return on investment than Magellan Financial. However, Kkr Credit Income is 1.91 times less risky than Magellan Financial. It trades about 0.2 of its potential returns per unit of risk. Magellan Financial Group is currently generating about -0.09 per unit of risk. If you would invest 231.00 in Kkr Credit Income on October 12, 2024 and sell it today you would earn a total of 6.00 from holding Kkr Credit Income or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kkr Credit Income vs. Magellan Financial Group
Performance |
| Timeline |
| Kkr Credit Income |
| Magellan Financial |
Kkr Credit and Magellan Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Magellan Financial
The main advantage of trading using opposite Kkr Credit and Magellan Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Magellan Financial 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 Magellan Financial will offset losses from the drop in Magellan Financial's long position.| Kkr Credit vs. Air New Zealand | Kkr Credit vs. Queste Communications | Kkr Credit vs. Torque Metals | Kkr Credit vs. Duxton Broadacre Farms |
| Magellan Financial vs. Credit Clear | Magellan Financial vs. ARN Media Limited | Magellan Financial vs. Commonwealth Bank of | Magellan Financial vs. Kkr Credit Income |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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