Correlation Between KKR Co and Bridge Investment
Can any of the company-specific risk be diversified away by investing in both KKR Co and Bridge Investment 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 Bridge Investment 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 Bridge Investment Group, you can compare the effects of market volatilities on KKR Co and Bridge Investment 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 Bridge Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of KKR Co and Bridge Investment.
Diversification Opportunities for KKR Co and Bridge Investment
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KKR and Bridge is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding KKR Co LP and Bridge Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridge Investment 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 Bridge Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridge Investment has no effect on the direction of KKR Co i.e., KKR Co and Bridge Investment go up and down completely randomly.
Pair Corralation between KKR Co and Bridge Investment
Considering the 90-day investment horizon KKR Co LP is expected to generate 0.88 times more return on investment than Bridge Investment. However, KKR Co LP is 1.14 times less risky than Bridge Investment. It trades about 0.18 of its potential returns per unit of risk. Bridge Investment Group is currently generating about 0.1 per unit of risk. If you would invest 10,288 in KKR Co LP on September 1, 2024 and sell it today you would earn a total of 5,999 from holding KKR Co LP or generate 58.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KKR Co LP vs. Bridge Investment Group
Performance |
| Timeline |
| KKR Co LP |
| Bridge Investment |
KKR Co and Bridge Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KKR Co and Bridge Investment
The main advantage of trading using opposite KKR Co and Bridge Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KKR Co position performs unexpectedly, Bridge Investment 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 Bridge Investment will offset losses from the drop in Bridge Investment's long position.| KKR Co vs. Carlyle Group | KKR Co vs. Ares Management LP | KKR Co vs. Blackstone Group | KKR Co vs. Blue Owl Capital |
| Bridge Investment vs. Federated Premier Municipal | Bridge Investment vs. Blackrock Muniyield | Bridge Investment vs. Diamond Hill Investment | Bridge Investment vs. NXG NextGen Infrastructure |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |