Correlation Between Kkr Credit and Srj Technologies
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Srj Technologies 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 Srj Technologies 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 Srj Technologies Group, you can compare the effects of market volatilities on Kkr Credit and Srj Technologies 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 Srj Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Srj Technologies.
Diversification Opportunities for Kkr Credit and Srj Technologies
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kkr and Srj is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Srj Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srj Technologies 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 Srj Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srj Technologies has no effect on the direction of Kkr Credit i.e., Kkr Credit and Srj Technologies go up and down completely randomly.
Pair Corralation between Kkr Credit and Srj Technologies
Assuming the 90 days trading horizon Kkr Credit Income is expected to generate 0.13 times more return on investment than Srj Technologies. However, Kkr Credit Income is 7.9 times less risky than Srj Technologies. It trades about 0.06 of its potential returns per unit of risk. Srj Technologies Group is currently generating about -0.35 per unit of risk. If you would invest 235.00 in Kkr Credit Income on November 7, 2024 and sell it today you would earn a total of 2.00 from holding Kkr Credit Income or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kkr Credit Income vs. Srj Technologies Group
Performance |
| Timeline |
| Kkr Credit Income |
| Srj Technologies |
Kkr Credit and Srj Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Srj Technologies
The main advantage of trading using opposite Kkr Credit and Srj Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Srj Technologies 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 Srj Technologies will offset losses from the drop in Srj Technologies' long position.| Kkr Credit vs. Westpac Banking | Kkr Credit vs. Iron Road | Kkr Credit vs. Latitude Financial Services | Kkr Credit vs. The Environmental Group |
| Srj Technologies vs. Stelar Metals | Srj Technologies vs. Collins Foods | Srj Technologies vs. ACDC Metals | Srj Technologies vs. Aeon Metals |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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