Correlation Between KKR Real and Chicago Atlantic
Can any of the company-specific risk be diversified away by investing in both KKR Real and Chicago Atlantic 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 Chicago Atlantic 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 Chicago Atlantic Real, you can compare the effects of market volatilities on KKR Real and Chicago Atlantic 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 Chicago Atlantic. Check out your portfolio center. Please also check ongoing floating volatility patterns of KKR Real and Chicago Atlantic.
Diversification Opportunities for KKR Real and Chicago Atlantic
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KKR and Chicago is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding KKR Real Estate and Chicago Atlantic Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicago Atlantic Real 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 Chicago Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicago Atlantic Real has no effect on the direction of KKR Real i.e., KKR Real and Chicago Atlantic go up and down completely randomly.
Pair Corralation between KKR Real and Chicago Atlantic
Given the investment horizon of 90 days KKR Real Estate is expected to under-perform the Chicago Atlantic. In addition to that, KKR Real is 1.67 times more volatile than Chicago Atlantic Real. It trades about -0.01 of its total potential returns per unit of risk. Chicago Atlantic Real is currently generating about 0.05 per unit of volatility. If you would invest 1,172 in Chicago Atlantic Real on October 25, 2024 and sell it today you would earn a total of 361.00 from holding Chicago Atlantic Real or generate 30.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KKR Real Estate vs. Chicago Atlantic Real
Performance |
| Timeline |
| KKR Real Estate |
| Chicago Atlantic Real |
KKR Real and Chicago Atlantic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KKR Real and Chicago Atlantic
The main advantage of trading using opposite KKR Real and Chicago Atlantic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KKR Real position performs unexpectedly, Chicago Atlantic 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 Chicago Atlantic will offset losses from the drop in Chicago Atlantic's long position.| KKR Real vs. Ellington Financial | KKR Real vs. Dynex Capital | KKR Real vs. Ares Commercial Real | KKR Real vs. Cherry Hill Mortgage |
| Chicago Atlantic vs. KKR Real Estate | Chicago Atlantic vs. Ellington Residential Mortgage | Chicago Atlantic vs. Claros Mortgage Trust | Chicago Atlantic vs. Ares Commercial Real |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |