Correlation Between Kkr Credit and National Storage
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and National Storage 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 National Storage 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 National Storage REIT, you can compare the effects of market volatilities on Kkr Credit and National Storage 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 National Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and National Storage.
Diversification Opportunities for Kkr Credit and National Storage
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kkr and National is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and National Storage REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Storage REIT 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 National Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Storage REIT has no effect on the direction of Kkr Credit i.e., Kkr Credit and National Storage go up and down completely randomly.
Pair Corralation between Kkr Credit and National Storage
Assuming the 90 days trading horizon Kkr Credit Income is expected to generate 0.7 times more return on investment than National Storage. However, Kkr Credit Income is 1.44 times less risky than National Storage. It trades about 0.18 of its potential returns per unit of risk. National Storage REIT is currently generating about -0.13 per unit of risk. If you would invest 227.00 in Kkr Credit Income on October 19, 2024 and sell it today you would earn a total of 12.00 from holding Kkr Credit Income or generate 5.29% 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. National Storage REIT
Performance |
| Timeline |
| Kkr Credit Income |
| National Storage REIT |
Kkr Credit and National Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and National Storage
The main advantage of trading using opposite Kkr Credit and National Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, National Storage 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 National Storage will offset losses from the drop in National Storage's long position.| Kkr Credit vs. ACDC Metals | Kkr Credit vs. Firstwave Cloud Technology | Kkr Credit vs. Microequities Asset Management | Kkr Credit vs. Technology One |
| National Storage vs. Queste Communications | National Storage vs. Beston Global Food | National Storage vs. Autosports Group | National Storage vs. Oceania Healthcare |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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