Correlation Between KKR Real and AMEN Properties
Can any of the company-specific risk be diversified away by investing in both KKR Real and AMEN Properties 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 Real and AMEN Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KKR Real Estate and AMEN Properties, you can compare the effects of market volatilities on KKR Real and AMEN Properties 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 Real with a short position of AMEN Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of KKR Real and AMEN Properties.
Diversification Opportunities for KKR Real and AMEN Properties
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KKR and AMEN is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding KKR Real Estate and AMEN Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMEN Properties and KKR Real 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 Real Estate are associated (or correlated) with AMEN Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMEN Properties has no effect on the direction of KKR Real i.e., KKR Real and AMEN Properties go up and down completely randomly.
Pair Corralation between KKR Real and AMEN Properties
If you would invest 1,047 in KKR Real Estate on September 1, 2024 and sell it today you would earn a total of 116.00 from holding KKR Real Estate or generate 11.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
KKR Real Estate vs. AMEN Properties
Performance |
| Timeline |
| KKR Real Estate |
| AMEN Properties |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KKR Real and AMEN Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KKR Real and AMEN Properties
The main advantage of trading using opposite KKR Real and AMEN Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KKR Real position performs unexpectedly, AMEN Properties 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 AMEN Properties will offset losses from the drop in AMEN Properties' long position.| KKR Real vs. Blackstone Mortgage Trust | KKR Real vs. Apollo Commercial Real | KKR Real vs. Omega Healthcare Investors | KKR Real vs. Medical Properties Trust |
| AMEN Properties vs. AER Energy Resources | AMEN Properties vs. Altura Energy | AMEN Properties vs. Alamo Energy Corp | AMEN Properties vs. Arete Industries |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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