Correlation Between Kkr Credit and Strickland Metals
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Strickland Metals 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 Strickland Metals 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 Strickland Metals, you can compare the effects of market volatilities on Kkr Credit and Strickland Metals 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 Strickland Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Strickland Metals.
Diversification Opportunities for Kkr Credit and Strickland Metals
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kkr and Strickland is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Strickland Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strickland Metals 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 Strickland Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strickland Metals has no effect on the direction of Kkr Credit i.e., Kkr Credit and Strickland Metals go up and down completely randomly.
Pair Corralation between Kkr Credit and Strickland Metals
Assuming the 90 days trading horizon Kkr Credit is expected to generate 7.02 times less return on investment than Strickland Metals. But when comparing it to its historical volatility, Kkr Credit Income is 5.58 times less risky than Strickland Metals. It trades about 0.1 of its potential returns per unit of risk. Strickland Metals is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 8.00 in Strickland Metals on September 13, 2024 and sell it today you would earn a total of 0.90 from holding Strickland Metals or generate 11.25% 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. Strickland Metals
Performance |
| Timeline |
| Kkr Credit Income |
| Strickland Metals |
Kkr Credit and Strickland Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Strickland Metals
The main advantage of trading using opposite Kkr Credit and Strickland Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Strickland Metals 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 Strickland Metals will offset losses from the drop in Strickland Metals' long position.| Kkr Credit vs. Mayfield Childcare | Kkr Credit vs. Bank of Queensland | Kkr Credit vs. Dexus Convenience Retail | Kkr Credit vs. Pioneer Credit |
| Strickland Metals vs. Health and Plant | Strickland Metals vs. Epsilon Healthcare | Strickland Metals vs. Commonwealth Bank of | Strickland Metals vs. Global Health |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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