Correlation Between Kkr Credit and TPG Telecom
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and TPG Telecom 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 TPG Telecom 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 TPG Telecom, you can compare the effects of market volatilities on Kkr Credit and TPG Telecom 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 TPG Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and TPG Telecom.
Diversification Opportunities for Kkr Credit and TPG Telecom
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kkr and TPG is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and TPG Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPG Telecom 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 TPG Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPG Telecom has no effect on the direction of Kkr Credit i.e., Kkr Credit and TPG Telecom go up and down completely randomly.
Pair Corralation between Kkr Credit and TPG Telecom
Assuming the 90 days trading horizon Kkr Credit Income is expected to generate 0.67 times more return on investment than TPG Telecom. However, Kkr Credit Income is 1.49 times less risky than TPG Telecom. It trades about 0.1 of its potential returns per unit of risk. TPG Telecom is currently generating about 0.05 per unit of risk. If you would invest 229.00 in Kkr Credit Income on September 13, 2024 and sell it today you would earn a total of 4.00 from holding Kkr Credit Income or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kkr Credit Income vs. TPG Telecom
Performance |
| Timeline |
| Kkr Credit Income |
| TPG Telecom |
Kkr Credit and TPG Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and TPG Telecom
The main advantage of trading using opposite Kkr Credit and TPG Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, TPG Telecom 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 TPG Telecom will offset losses from the drop in TPG Telecom's long position.| Kkr Credit vs. Mayfield Childcare | Kkr Credit vs. Bank of Queensland | Kkr Credit vs. Dexus Convenience Retail | Kkr Credit vs. Pioneer Credit |
| TPG Telecom vs. Accent Resources NL | TPG Telecom vs. Hutchison Telecommunications | TPG Telecom vs. Energy Resources | TPG Telecom vs. Pact Group Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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