Correlation Between National Australia and Kkr Credit
Can any of the company-specific risk be diversified away by investing in both National Australia 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 National Australia and Kkr Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Australia Bank and Kkr Credit Income, you can compare the effects of market volatilities on National Australia 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 National Australia with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Australia and Kkr Credit.
Diversification Opportunities for National Australia and Kkr Credit
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between National and Kkr is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding National Australia Bank 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 National Australia 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 National Australia Bank 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 National Australia i.e., National Australia and Kkr Credit go up and down completely randomly.
Pair Corralation between National Australia and Kkr Credit
Assuming the 90 days trading horizon National Australia is expected to generate 1.06 times less return on investment than Kkr Credit. But when comparing it to its historical volatility, National Australia Bank is 3.25 times less risky than Kkr Credit. It trades about 0.12 of its potential returns per unit of risk. Kkr Credit Income is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 222.00 in Kkr Credit Income on September 1, 2024 and sell it today you would earn a total of 9.00 from holding Kkr Credit Income or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Australia Bank vs. Kkr Credit Income
Performance |
| Timeline |
| National Australia Bank |
| Kkr Credit Income |
National Australia and Kkr Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Australia and Kkr Credit
The main advantage of trading using opposite National Australia and Kkr Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Australia 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.| National Australia vs. Alto Metals | National Australia vs. Oceania Healthcare | National Australia vs. Singular Health Group | National Australia vs. Austco Healthcare |
| Kkr Credit vs. Iron Road | Kkr Credit vs. Phoslock Environmental Technologies | Kkr Credit vs. Green Technology Metals | Kkr Credit vs. Legacy Iron Ore |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| CEOs Directory Screen CEOs from public companies around the world |