Correlation Between Kkr Credit and Super Retail
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Super Retail 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 Super Retail 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 Super Retail Group, you can compare the effects of market volatilities on Kkr Credit and Super Retail 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 Super Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Super Retail.
Diversification Opportunities for Kkr Credit and Super Retail
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kkr and Super is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Super Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Retail Group 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 Super Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Retail Group has no effect on the direction of Kkr Credit i.e., Kkr Credit and Super Retail go up and down completely randomly.
Pair Corralation between Kkr Credit and Super Retail
Assuming the 90 days trading horizon Kkr Credit Income is expected to generate 0.47 times more return on investment than Super Retail. However, Kkr Credit Income is 2.14 times less risky than Super Retail. It trades about -0.07 of its potential returns per unit of risk. Super Retail Group is currently generating about -0.06 per unit of risk. If you would invest 233.00 in Kkr Credit Income on August 29, 2024 and sell it today you would lose (3.00) from holding Kkr Credit Income or give up 1.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kkr Credit Income vs. Super Retail Group
Performance |
| Timeline |
| Kkr Credit Income |
| Super Retail Group |
Kkr Credit and Super Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Super Retail
The main advantage of trading using opposite Kkr Credit and Super Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Super Retail 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 Super Retail will offset losses from the drop in Super Retail's long position.| Kkr Credit vs. Australian Unity Office | Kkr Credit vs. Kip McGrath Education | Kkr Credit vs. Thorney Technologies | Kkr Credit vs. Qbe Insurance Group |
| Super Retail vs. Macquarie Group | Super Retail vs. Macquarie Group Ltd | Super Retail vs. Commonwealth Bank | Super Retail vs. Rio Tinto |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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