Correlation Between KKR Co and Triplepoint Venture
Can any of the company-specific risk be diversified away by investing in both KKR Co and Triplepoint Venture 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 Triplepoint Venture 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 Triplepoint Venture Growth, you can compare the effects of market volatilities on KKR Co and Triplepoint Venture 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 Triplepoint Venture. Check out your portfolio center. Please also check ongoing floating volatility patterns of KKR Co and Triplepoint Venture.
Diversification Opportunities for KKR Co and Triplepoint Venture
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KKR and Triplepoint is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding KKR Co LP and Triplepoint Venture Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triplepoint Venture 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 Triplepoint Venture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triplepoint Venture has no effect on the direction of KKR Co i.e., KKR Co and Triplepoint Venture go up and down completely randomly.
Pair Corralation between KKR Co and Triplepoint Venture
Considering the 90-day investment horizon KKR Co LP is expected to under-perform the Triplepoint Venture. In addition to that, KKR Co is 2.17 times more volatile than Triplepoint Venture Growth. It trades about -0.19 of its total potential returns per unit of risk. Triplepoint Venture Growth is currently generating about 0.13 per unit of volatility. If you would invest 761.00 in Triplepoint Venture Growth on November 18, 2024 and sell it today you would earn a total of 25.00 from holding Triplepoint Venture Growth or generate 3.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KKR Co LP vs. Triplepoint Venture Growth
Performance |
| Timeline |
| KKR Co LP |
| Triplepoint Venture |
KKR Co and Triplepoint Venture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KKR Co and Triplepoint Venture
The main advantage of trading using opposite KKR Co and Triplepoint Venture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KKR Co position performs unexpectedly, Triplepoint Venture 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 Triplepoint Venture will offset losses from the drop in Triplepoint Venture'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 |
| Triplepoint Venture vs. BlackRock TCP Capital | Triplepoint Venture vs. Sixth Street Specialty | Triplepoint Venture vs. Golub Capital BDC | Triplepoint Venture vs. New Mountain Finance |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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