Correlation Between KKR Co and Eat Well
Can any of the company-specific risk be diversified away by investing in both KKR Co and Eat Well 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 Eat Well 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 Eat Well Investment, you can compare the effects of market volatilities on KKR Co and Eat Well 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 Eat Well. Check out your portfolio center. Please also check ongoing floating volatility patterns of KKR Co and Eat Well.
Diversification Opportunities for KKR Co and Eat Well
Significant diversification
The 3 months correlation between KKR and Eat is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding KKR Co LP and Eat Well Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eat Well 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 Eat Well. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eat Well Investment has no effect on the direction of KKR Co i.e., KKR Co and Eat Well go up and down completely randomly.
Pair Corralation between KKR Co and Eat Well
Considering the 90-day investment horizon KKR Co is expected to generate 17.71 times less return on investment than Eat Well. But when comparing it to its historical volatility, KKR Co LP is 28.76 times less risky than Eat Well. It trades about 0.11 of its potential returns per unit of risk. Eat Well Investment is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Eat Well Investment on October 13, 2024 and sell it today you would lose (15.00) from holding Eat Well Investment or give up 93.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KKR Co LP vs. Eat Well Investment
Performance |
| Timeline |
| KKR Co LP |
| Eat Well Investment |
KKR Co and Eat Well Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KKR Co and Eat Well
The main advantage of trading using opposite KKR Co and Eat Well positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KKR Co position performs unexpectedly, Eat Well 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 Eat Well will offset losses from the drop in Eat Well'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 |
| Eat Well vs. Flow Capital Corp | Eat Well vs. Guardian Capital Group | Eat Well vs. Urbana | Eat Well vs. Princeton Capital |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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