Correlation Between Kkr Credit and Suncorp Group
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Suncorp Group 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 Suncorp Group 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 Suncorp Group Ltd, you can compare the effects of market volatilities on Kkr Credit and Suncorp Group 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 Suncorp Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Suncorp Group.
Diversification Opportunities for Kkr Credit and Suncorp Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kkr and Suncorp is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Suncorp Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suncorp 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 Suncorp Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suncorp Group has no effect on the direction of Kkr Credit i.e., Kkr Credit and Suncorp Group go up and down completely randomly.
Pair Corralation between Kkr Credit and Suncorp Group
Assuming the 90 days trading horizon Kkr Credit Income is expected to generate 6.3 times more return on investment than Suncorp Group. However, Kkr Credit is 6.3 times more volatile than Suncorp Group Ltd. It trades about 0.06 of its potential returns per unit of risk. Suncorp Group Ltd is currently generating about 0.05 per unit of risk. If you would invest 209.00 in Kkr Credit Income on December 2, 2024 and sell it today you would earn a total of 24.00 from holding Kkr Credit Income or generate 11.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kkr Credit Income vs. Suncorp Group Ltd
Performance |
| Timeline |
| Kkr Credit Income |
| Suncorp Group |
Kkr Credit and Suncorp Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Suncorp Group
The main advantage of trading using opposite Kkr Credit and Suncorp Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Suncorp Group 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 Suncorp Group will offset losses from the drop in Suncorp Group's long position.| Kkr Credit vs. Steamships Trading | Kkr Credit vs. Austco Healthcare | Kkr Credit vs. Hotel Property Investments | Kkr Credit vs. Epsilon Healthcare |
| Suncorp Group vs. Dug Technology | Suncorp Group vs. Macquarie Technology Group | Suncorp Group vs. Sports Entertainment Group | Suncorp Group vs. Kneomedia |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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