Correlation Between KKR Co and Suntex Enterprises
Can any of the company-specific risk be diversified away by investing in both KKR Co and Suntex Enterprises 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 Suntex Enterprises 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 Suntex Enterprises, you can compare the effects of market volatilities on KKR Co and Suntex Enterprises 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 Suntex Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of KKR Co and Suntex Enterprises.
Diversification Opportunities for KKR Co and Suntex Enterprises
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KKR and Suntex is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding KKR Co LP and Suntex Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suntex Enterprises 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 Suntex Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suntex Enterprises has no effect on the direction of KKR Co i.e., KKR Co and Suntex Enterprises go up and down completely randomly.
Pair Corralation between KKR Co and Suntex Enterprises
Considering the 90-day investment horizon KKR Co is expected to generate 7.56 times less return on investment than Suntex Enterprises. But when comparing it to its historical volatility, KKR Co LP is 10.82 times less risky than Suntex Enterprises. It trades about 0.11 of its potential returns per unit of risk. Suntex Enterprises is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.52 in Suntex Enterprises on October 13, 2024 and sell it today you would lose (0.36) from holding Suntex Enterprises or give up 69.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KKR Co LP vs. Suntex Enterprises
Performance |
| Timeline |
| KKR Co LP |
| Suntex Enterprises |
KKR Co and Suntex Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KKR Co and Suntex Enterprises
The main advantage of trading using opposite KKR Co and Suntex Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KKR Co position performs unexpectedly, Suntex Enterprises 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 Suntex Enterprises will offset losses from the drop in Suntex Enterprises' long position.| KKR Co vs. Carlyle Group | KKR Co vs. Ares Management LP | KKR Co vs. Blackstone Group | KKR Co vs. Blue Owl Capital |
| Suntex Enterprises vs. Strategic Management and | Suntex Enterprises vs. White Label Liquid | Suntex Enterprises vs. EGF Theramed Health |
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 CEOs Directory module to screen CEOs from public companies around the world.
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