Correlation Between KKR Co and Aquaron Acquisition
Can any of the company-specific risk be diversified away by investing in both KKR Co and Aquaron Acquisition 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 Co and Aquaron Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KKR Co LP and Aquaron Acquisition Corp, you can compare the effects of market volatilities on KKR Co and Aquaron Acquisition 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 Co with a short position of Aquaron Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of KKR Co and Aquaron Acquisition.
Diversification Opportunities for KKR Co and Aquaron Acquisition
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KKR and Aquaron is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding KKR Co LP and Aquaron Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquaron Acquisition Corp and KKR Co 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 Co LP are associated (or correlated) with Aquaron Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquaron Acquisition Corp has no effect on the direction of KKR Co i.e., KKR Co and Aquaron Acquisition go up and down completely randomly.
Pair Corralation between KKR Co and Aquaron Acquisition
Considering the 90-day investment horizon KKR Co LP is expected to generate 0.56 times more return on investment than Aquaron Acquisition. However, KKR Co LP is 1.78 times less risky than Aquaron Acquisition. It trades about 0.16 of its potential returns per unit of risk. Aquaron Acquisition Corp is currently generating about 0.04 per unit of risk. If you would invest 15,258 in KKR Co LP on October 25, 2024 and sell it today you would earn a total of 893.00 from holding KKR Co LP or generate 5.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KKR Co LP vs. Aquaron Acquisition Corp
Performance |
| Timeline |
| KKR Co LP |
| Aquaron Acquisition Corp |
KKR Co and Aquaron Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KKR Co and Aquaron Acquisition
The main advantage of trading using opposite KKR Co and Aquaron Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KKR Co position performs unexpectedly, Aquaron Acquisition 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 Aquaron Acquisition will offset losses from the drop in Aquaron Acquisition's long position.| KKR Co vs. MFS Investment Grade | KKR Co vs. Eaton Vance National | KKR Co vs. Nuveen California Select | KKR Co vs. Federated Premier Municipal |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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