Correlation Between KKR Co and QC Copper
Can any of the company-specific risk be diversified away by investing in both KKR Co and QC Copper 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 QC Copper 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 QC Copper and, you can compare the effects of market volatilities on KKR Co and QC Copper 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 QC Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of KKR Co and QC Copper.
Diversification Opportunities for KKR Co and QC Copper
Very good diversification
The 3 months correlation between KKR and QCCUF is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding KKR Co LP and QC Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QC Copper 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 QC Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QC Copper has no effect on the direction of KKR Co i.e., KKR Co and QC Copper go up and down completely randomly.
Pair Corralation between KKR Co and QC Copper
Considering the 90-day investment horizon KKR Co LP is expected to generate 0.38 times more return on investment than QC Copper. However, KKR Co LP is 2.61 times less risky than QC Copper. It trades about 0.13 of its potential returns per unit of risk. QC Copper and is currently generating about 0.02 per unit of risk. If you would invest 4,908 in KKR Co LP on September 3, 2024 and sell it today you would earn a total of 11,379 from holding KKR Co LP or generate 231.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KKR Co LP vs. QC Copper and
Performance |
| Timeline |
| KKR Co LP |
| QC Copper |
KKR Co and QC Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KKR Co and QC Copper
The main advantage of trading using opposite KKR Co and QC Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KKR Co position performs unexpectedly, QC Copper 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 QC Copper will offset losses from the drop in QC Copper'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 |
| QC Copper vs. Copper Fox Metals | QC Copper vs. Imperial Metals | QC Copper vs. Bell Copper | QC Copper vs. Arizona Sonoran Copper |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |