Correlation Between KKR Co and Cion Investment
Can any of the company-specific risk be diversified away by investing in both KKR Co and Cion 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 Cion 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 Cion Investment Corp, you can compare the effects of market volatilities on KKR Co and Cion 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 Cion Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of KKR Co and Cion Investment.
Diversification Opportunities for KKR Co and Cion Investment
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KKR and Cion is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding KKR Co LP and Cion Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cion Investment 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 Cion Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cion Investment Corp has no effect on the direction of KKR Co i.e., KKR Co and Cion Investment go up and down completely randomly.
Pair Corralation between KKR Co and Cion Investment
Considering the 90-day investment horizon KKR Co LP is expected to generate 2.13 times more return on investment than Cion Investment. However, KKR Co is 2.13 times more volatile than Cion Investment Corp. It trades about 0.24 of its potential returns per unit of risk. Cion Investment Corp is currently generating about -0.12 per unit of risk. If you would invest 13,837 in KKR Co LP on August 24, 2024 and sell it today you would earn a total of 1,930 from holding KKR Co LP or generate 13.95% 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. Cion Investment Corp
Performance |
| Timeline |
| KKR Co LP |
| Cion Investment Corp |
KKR Co and Cion Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KKR Co and Cion Investment
The main advantage of trading using opposite KKR Co and Cion Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KKR Co position performs unexpectedly, Cion 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 Cion Investment will offset losses from the drop in Cion 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 |
| Cion Investment vs. Federated Premier Municipal | Cion Investment vs. Blackrock Muniyield | Cion Investment vs. Diamond Hill Investment | Cion 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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