Correlation Between Kkr Credit and Peel Mining
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Peel Mining 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 Peel Mining 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 Peel Mining, you can compare the effects of market volatilities on Kkr Credit and Peel Mining 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 Peel Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Peel Mining.
Diversification Opportunities for Kkr Credit and Peel Mining
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kkr and Peel is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Peel Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peel Mining 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 Peel Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peel Mining has no effect on the direction of Kkr Credit i.e., Kkr Credit and Peel Mining go up and down completely randomly.
Pair Corralation between Kkr Credit and Peel Mining
Assuming the 90 days trading horizon Kkr Credit Income is expected to generate 0.37 times more return on investment than Peel Mining. However, Kkr Credit Income is 2.7 times less risky than Peel Mining. It trades about 0.04 of its potential returns per unit of risk. Peel Mining is currently generating about -0.24 per unit of risk. If you would invest 235.00 in Kkr Credit Income on October 23, 2024 and sell it today you would earn a total of 1.00 from holding Kkr Credit Income or generate 0.43% 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. Peel Mining
Performance |
| Timeline |
| Kkr Credit Income |
| Peel Mining |
Kkr Credit and Peel Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Peel Mining
The main advantage of trading using opposite Kkr Credit and Peel Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Peel Mining 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 Peel Mining will offset losses from the drop in Peel Mining's long position.| Kkr Credit vs. Macquarie Technology Group | Kkr Credit vs. Microequities Asset Management | Kkr Credit vs. Mirrabooka Investments | Kkr Credit vs. Firstwave Cloud Technology |
| Peel Mining vs. Queste Communications | Peel Mining vs. Kkr Credit Income | Peel Mining vs. Saferoads Holdings | Peel Mining vs. Insurance Australia 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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