Correlation Between Kkr Credit and Platinum Asset
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Platinum Asset 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 Platinum Asset 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 Platinum Asset Management, you can compare the effects of market volatilities on Kkr Credit and Platinum Asset 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 Platinum Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Platinum Asset.
Diversification Opportunities for Kkr Credit and Platinum Asset
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kkr and Platinum is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Platinum Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Asset Management 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 Platinum Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Asset Management has no effect on the direction of Kkr Credit i.e., Kkr Credit and Platinum Asset go up and down completely randomly.
Pair Corralation between Kkr Credit and Platinum Asset
Assuming the 90 days trading horizon Kkr Credit Income is expected to generate 0.18 times more return on investment than Platinum Asset. However, Kkr Credit Income is 5.56 times less risky than Platinum Asset. It trades about 0.12 of its potential returns per unit of risk. Platinum Asset Management is currently generating about -0.1 per unit of risk. If you would invest 227.00 in Kkr Credit Income on November 2, 2024 and sell it today you would earn a total of 7.00 from holding Kkr Credit Income or generate 3.08% 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. Platinum Asset Management
Performance |
| Timeline |
| Kkr Credit Income |
| Platinum Asset Management |
Kkr Credit and Platinum Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Platinum Asset
The main advantage of trading using opposite Kkr Credit and Platinum Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Platinum Asset 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 Platinum Asset will offset losses from the drop in Platinum Asset's long position.| Kkr Credit vs. ABACUS STORAGE KING | Kkr Credit vs. Ecofibre | Kkr Credit vs. iShares Global Healthcare | Kkr Credit vs. Adriatic Metals Plc |
| Platinum Asset vs. Aneka Tambang Tbk | Platinum Asset vs. BHP Group Limited | Platinum Asset vs. Ecofibre | Platinum Asset vs. iShares Global 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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