Correlation Between Kkr Credit and Whitehaven Coal
Can any of the company-specific risk be diversified away by investing in both Kkr Credit and Whitehaven Coal 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 Whitehaven Coal 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 Whitehaven Coal, you can compare the effects of market volatilities on Kkr Credit and Whitehaven Coal 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 Whitehaven Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kkr Credit and Whitehaven Coal.
Diversification Opportunities for Kkr Credit and Whitehaven Coal
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kkr and Whitehaven is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Kkr Credit Income and Whitehaven Coal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whitehaven Coal 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 Whitehaven Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whitehaven Coal has no effect on the direction of Kkr Credit i.e., Kkr Credit and Whitehaven Coal go up and down completely randomly.
Pair Corralation between Kkr Credit and Whitehaven Coal
Assuming the 90 days trading horizon Kkr Credit Income is expected to generate 0.51 times more return on investment than Whitehaven Coal. However, Kkr Credit Income is 1.95 times less risky than Whitehaven Coal. It trades about -0.02 of its potential returns per unit of risk. Whitehaven Coal is currently generating about -0.1 per unit of risk. If you would invest 232.00 in Kkr Credit Income on September 3, 2024 and sell it today you would lose (1.00) from holding Kkr Credit Income or give up 0.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kkr Credit Income vs. Whitehaven Coal
Performance |
| Timeline |
| Kkr Credit Income |
| Whitehaven Coal |
Kkr Credit and Whitehaven Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kkr Credit and Whitehaven Coal
The main advantage of trading using opposite Kkr Credit and Whitehaven Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kkr Credit position performs unexpectedly, Whitehaven Coal 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 Whitehaven Coal will offset losses from the drop in Whitehaven Coal'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 |
| Whitehaven Coal vs. Legacy Iron Ore | Whitehaven Coal vs. Land Homes Group | Whitehaven Coal vs. Health and Plant | Whitehaven Coal vs. Cleanaway Waste Management |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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