Correlation Between Ora Banda and Kkr Credit
Can any of the company-specific risk be diversified away by investing in both Ora Banda 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 Ora Banda and Kkr Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ora Banda Mining and Kkr Credit Income, you can compare the effects of market volatilities on Ora Banda 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 Ora Banda with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ora Banda and Kkr Credit.
Diversification Opportunities for Ora Banda and Kkr Credit
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ora and Kkr is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Ora Banda 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 Ora Banda 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 Ora Banda 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 Ora Banda i.e., Ora Banda and Kkr Credit go up and down completely randomly.
Pair Corralation between Ora Banda and Kkr Credit
Assuming the 90 days trading horizon Ora Banda Mining is expected to under-perform the Kkr Credit. In addition to that, Ora Banda is 5.97 times more volatile than Kkr Credit Income. It trades about -0.24 of its total potential returns per unit of risk. Kkr Credit Income is currently generating about -0.05 per unit of volatility. If you would invest 232.00 in Kkr Credit Income on September 4, 2024 and sell it today you would lose (2.00) from holding Kkr Credit Income or give up 0.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ora Banda Mining vs. Kkr Credit Income
Performance |
| Timeline |
| Ora Banda Mining |
| Kkr Credit Income |
Ora Banda and Kkr Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ora Banda and Kkr Credit
The main advantage of trading using opposite Ora Banda and Kkr Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ora Banda 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.| Ora Banda vs. Northern Star Resources | Ora Banda vs. Evolution Mining | Ora Banda vs. Sandfire Resources NL | Ora Banda vs. Aneka Tambang Tbk |
| Kkr Credit vs. Westpac Banking | Kkr Credit vs. ABACUS STORAGE KING | Kkr Credit vs. Odyssey Energy | Kkr Credit vs. JB Hi Fi |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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