Correlation Between Coca Cola and Kkr Income
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Kkr Income 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 Coca Cola and Kkr Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Coca Cola and Kkr Income Opportunities, you can compare the effects of market volatilities on Coca Cola and Kkr Income 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 Coca Cola with a short position of Kkr Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Kkr Income.
Diversification Opportunities for Coca Cola and Kkr Income
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Coca and Kkr is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Kkr Income Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kkr Income Opportunities and Coca Cola 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 The Coca Cola are associated (or correlated) with Kkr Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kkr Income Opportunities has no effect on the direction of Coca Cola i.e., Coca Cola and Kkr Income go up and down completely randomly.
Pair Corralation between Coca Cola and Kkr Income
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 1.01 times more return on investment than Kkr Income. However, Coca Cola is 1.01 times more volatile than Kkr Income Opportunities. It trades about -0.12 of its potential returns per unit of risk. Kkr Income Opportunities is currently generating about -0.21 per unit of risk. If you would invest 6,592 in The Coca Cola on August 31, 2024 and sell it today you would lose (149.00) from holding The Coca Cola or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Coca Cola vs. Kkr Income Opportunities
Performance |
| Timeline |
| Coca Cola |
| Kkr Income Opportunities |
Coca Cola and Kkr Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Kkr Income
The main advantage of trading using opposite Coca Cola and Kkr Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Kkr Income 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 Kkr Income will offset losses from the drop in Kkr Income's long position.| Coca Cola vs. Monster Beverage Corp | Coca Cola vs. RLJ Lodging Trust | Coca Cola vs. Aquagold International | Coca Cola vs. Stepstone Group |
| Kkr Income vs. Nuveen Floating Rate | Kkr Income vs. Blackrock Muni Intermediate | Kkr Income vs. Eaton Vance Senior | Kkr Income vs. Nuveen Dynamic Municipal |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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