Correlation Between Oaktree Specialty and FS KKR
Can any of the company-specific risk be diversified away by investing in both Oaktree Specialty and FS KKR 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 Oaktree Specialty and FS KKR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oaktree Specialty Lending and FS KKR Capital, you can compare the effects of market volatilities on Oaktree Specialty and FS KKR 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 Oaktree Specialty with a short position of FS KKR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oaktree Specialty and FS KKR.
Diversification Opportunities for Oaktree Specialty and FS KKR
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oaktree and FSK is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Oaktree Specialty Lending and FS KKR Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FS KKR Capital and Oaktree Specialty 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 Oaktree Specialty Lending are associated (or correlated) with FS KKR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FS KKR Capital has no effect on the direction of Oaktree Specialty i.e., Oaktree Specialty and FS KKR go up and down completely randomly.
Pair Corralation between Oaktree Specialty and FS KKR
Given the investment horizon of 90 days Oaktree Specialty Lending is expected to under-perform the FS KKR. In addition to that, Oaktree Specialty is 1.3 times more volatile than FS KKR Capital. It trades about -0.08 of its total potential returns per unit of risk. FS KKR Capital is currently generating about 0.13 per unit of volatility. If you would invest 1,930 in FS KKR Capital on September 1, 2024 and sell it today you would earn a total of 292.00 from holding FS KKR Capital or generate 15.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oaktree Specialty Lending vs. FS KKR Capital
Performance |
| Timeline |
| Oaktree Specialty Lending |
| FS KKR Capital |
Oaktree Specialty and FS KKR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oaktree Specialty and FS KKR
The main advantage of trading using opposite Oaktree Specialty and FS KKR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oaktree Specialty position performs unexpectedly, FS KKR 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 FS KKR will offset losses from the drop in FS KKR's long position.| Oaktree Specialty vs. Barings BDC | Oaktree Specialty vs. OneMain Holdings | Oaktree Specialty vs. Runway Growth Finance | Oaktree Specialty vs. Ally Financial |
| FS KKR vs. BlackRock TCP Capital | FS KKR vs. Triplepoint Venture Growth | FS KKR vs. Sixth Street Specialty | FS KKR vs. Golub Capital BDC |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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