Correlation Between Kkr Credit and Treasury Wine
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Treasury Wine 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 Treasury Wine 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 Treasury Wine Estates, you can compare the effects of market volatilities on Kkr Credit and Treasury Wine 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 Treasury Wine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Treasury Wine.
Diversification Opportunities for Kkr Credit and Treasury Wine
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kkr and Treasury is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Treasury Wine Estates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Treasury Wine Estates 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 Treasury Wine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Treasury Wine Estates has no effect on the direction of Kkr Credit i.e., Kkr Credit and Treasury Wine go up and down completely randomly.
Pair Corralation between Kkr Credit and Treasury Wine
Assuming the 90 days trading horizon Kkr Credit Income is expected to generate 0.37 times more return on investment than Treasury Wine. However, Kkr Credit Income is 2.7 times less risky than Treasury Wine. It trades about 0.05 of its potential returns per unit of risk. Treasury Wine Estates is currently generating about 0.02 per unit of risk. If you would invest 226.00 in Kkr Credit Income on September 3, 2024 and sell it today you would earn a total of 5.00 from holding Kkr Credit Income or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kkr Credit Income vs. Treasury Wine Estates
Performance |
| Timeline |
| Kkr Credit Income |
| Treasury Wine Estates |
Kkr Credit and Treasury Wine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Treasury Wine
The main advantage of trading using opposite Kkr Credit and Treasury Wine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Treasury Wine 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 Treasury Wine will offset losses from the drop in Treasury Wine's long position.| Kkr Credit vs. ABACUS STORAGE KING | Kkr Credit vs. Champion Iron | Kkr Credit vs. iShares Global Healthcare | Kkr Credit vs. Peel Mining |
| Treasury Wine vs. Qbe Insurance Group | Treasury Wine vs. Infomedia | Treasury Wine vs. National Australia Bank | Treasury Wine vs. Kkr Credit Income |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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