Correlation Between Kkr Credit and Oceania Healthcare
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Oceania Healthcare 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 Oceania Healthcare 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 Oceania Healthcare, you can compare the effects of market volatilities on Kkr Credit and Oceania Healthcare 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 Oceania Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Oceania Healthcare.
Diversification Opportunities for Kkr Credit and Oceania Healthcare
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kkr and Oceania is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Oceania Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oceania Healthcare 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 Oceania Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oceania Healthcare has no effect on the direction of Kkr Credit i.e., Kkr Credit and Oceania Healthcare go up and down completely randomly.
Pair Corralation between Kkr Credit and Oceania Healthcare
Assuming the 90 days trading horizon Kkr Credit Income is expected to under-perform the Oceania Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Kkr Credit Income is 5.71 times less risky than Oceania Healthcare. The stock trades about -0.1 of its potential returns per unit of risk. The Oceania Healthcare is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 67.00 in Oceania Healthcare on October 27, 2024 and sell it today you would earn a total of 5.00 from holding Oceania Healthcare or generate 7.46% 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. Oceania Healthcare
Performance |
| Timeline |
| Kkr Credit Income |
| Oceania Healthcare |
Kkr Credit and Oceania Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Oceania Healthcare
The main advantage of trading using opposite Kkr Credit and Oceania Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Oceania Healthcare 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 Oceania Healthcare will offset losses from the drop in Oceania Healthcare's long position.| Kkr Credit vs. Dug Technology | Kkr Credit vs. Falcon Metals | Kkr Credit vs. Torque Metals | Kkr Credit vs. FireFly Metals |
| Oceania Healthcare vs. EMvision Medical Devices | Oceania Healthcare vs. Home Consortium | Oceania Healthcare vs. Actinogen Medical | Oceania Healthcare vs. Qbe Insurance 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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