Correlation Between Kkr Credit and Parkd
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Parkd 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 Parkd 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 Parkd, you can compare the effects of market volatilities on Kkr Credit and Parkd 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 Parkd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Parkd.
Diversification Opportunities for Kkr Credit and Parkd
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kkr and Parkd is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Parkd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parkd 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 Parkd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parkd has no effect on the direction of Kkr Credit i.e., Kkr Credit and Parkd go up and down completely randomly.
Pair Corralation between Kkr Credit and Parkd
Assuming the 90 days trading horizon Kkr Credit is expected to generate 52.4 times less return on investment than Parkd. But when comparing it to its historical volatility, Kkr Credit Income is 29.8 times less risky than Parkd. It trades about 0.24 of its potential returns per unit of risk. Parkd is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 2.50 in Parkd on November 27, 2024 and sell it today you would earn a total of 3.00 from holding Parkd or generate 120.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kkr Credit Income vs. Parkd
Performance |
| Timeline |
| Kkr Credit Income |
| Parkd |
Kkr Credit and Parkd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Parkd
The main advantage of trading using opposite Kkr Credit and Parkd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Parkd 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 Parkd will offset losses from the drop in Parkd's long position.| Kkr Credit vs. Clime Investment Management | Kkr Credit vs. REGAL ASIAN INVESTMENTS | Kkr Credit vs. Collins Foods | Kkr Credit vs. Arc Funds |
| Parkd vs. Vitura Health Limited | Parkd vs. Austco Healthcare | Parkd vs. Oneview Healthcare PLC | Parkd vs. EVE Health 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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