Correlation Between Metro Mining and Kkr Credit
Can any of the company-specific risk be diversified away by investing in both Metro Mining 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 Metro Mining and Kkr Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metro Mining and Kkr Credit Income, you can compare the effects of market volatilities on Metro Mining 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 Metro Mining with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Mining and Kkr Credit.
Diversification Opportunities for Metro Mining and Kkr Credit
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Metro and Kkr is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Metro Mining 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 Metro Mining 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 Metro Mining 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 Metro Mining i.e., Metro Mining and Kkr Credit go up and down completely randomly.
Pair Corralation between Metro Mining and Kkr Credit
Assuming the 90 days trading horizon Metro Mining is expected to generate 3.9 times more return on investment than Kkr Credit. However, Metro Mining is 3.9 times more volatile than Kkr Credit Income. It trades about 0.05 of its potential returns per unit of risk. Kkr Credit Income is currently generating about 0.15 per unit of risk. If you would invest 5.60 in Metro Mining on October 22, 2024 and sell it today you would earn a total of 0.10 from holding Metro Mining or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metro Mining vs. Kkr Credit Income
Performance |
| Timeline |
| Metro Mining |
| Kkr Credit Income |
Metro Mining and Kkr Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Mining and Kkr Credit
The main advantage of trading using opposite Metro Mining and Kkr Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Mining 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.| Metro Mining vs. Sandon Capital Investments | Metro Mining vs. BlackWall Property Funds | Metro Mining vs. Clime Investment Management | Metro Mining vs. Saferoads Holdings |
| Kkr Credit vs. Charter Hall Education | Kkr Credit vs. TPG Telecom | Kkr Credit vs. Hutchison Telecommunications | Kkr Credit vs. Super Retail Group |
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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