Correlation Between Macquarie Technology and Kkr Credit
Can any of the company-specific risk be diversified away by investing in both Macquarie Technology and Kkr Credit 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 Macquarie Technology and Kkr Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macquarie Technology Group and Kkr Credit Income, you can compare the effects of market volatilities on Macquarie Technology and Kkr Credit 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 Macquarie Technology with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Technology and Kkr Credit.
Diversification Opportunities for Macquarie Technology and Kkr Credit
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Macquarie and Kkr is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Macquarie Technology Group and Kkr Credit Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kkr Credit Income and Macquarie Technology 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 Macquarie Technology Group are associated (or correlated) with Kkr Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kkr Credit Income has no effect on the direction of Macquarie Technology i.e., Macquarie Technology and Kkr Credit go up and down completely randomly.
Pair Corralation between Macquarie Technology and Kkr Credit
Assuming the 90 days trading horizon Macquarie Technology Group is expected to under-perform the Kkr Credit. In addition to that, Macquarie Technology is 1.96 times more volatile than Kkr Credit Income. It trades about -0.06 of its total potential returns per unit of risk. Kkr Credit Income is currently generating about -0.09 per unit of volatility. If you would invest 239.00 in Kkr Credit Income on October 28, 2024 and sell it today you would lose (3.00) from holding Kkr Credit Income or give up 1.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macquarie Technology Group vs. Kkr Credit Income
Performance |
| Timeline |
| Macquarie Technology |
| Kkr Credit Income |
Macquarie Technology and Kkr Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macquarie Technology and Kkr Credit
The main advantage of trading using opposite Macquarie Technology and Kkr Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquarie Technology position performs unexpectedly, Kkr Credit 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 Credit will offset losses from the drop in Kkr Credit's long position.| Macquarie Technology vs. BKI Investment | Macquarie Technology vs. Global Health | Macquarie Technology vs. Navigator Global Investments | Macquarie Technology vs. Vitura Health Limited |
| Kkr Credit vs. Clime Investment Management | Kkr Credit vs. Carlton Investments | Kkr Credit vs. Perseus Mining | Kkr Credit vs. Pinnacle Investment Management |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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