Correlation Between Chicago Atlantic and KKR Real
Can any of the company-specific risk be diversified away by investing in both Chicago Atlantic and KKR Real 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 Chicago Atlantic and KKR Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chicago Atlantic Real and KKR Real Estate, you can compare the effects of market volatilities on Chicago Atlantic and KKR Real 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 Chicago Atlantic with a short position of KKR Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chicago Atlantic and KKR Real.
Diversification Opportunities for Chicago Atlantic and KKR Real
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chicago and KKR is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Chicago Atlantic Real and KKR Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KKR Real Estate and Chicago Atlantic 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 Chicago Atlantic Real are associated (or correlated) with KKR Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KKR Real Estate has no effect on the direction of Chicago Atlantic i.e., Chicago Atlantic and KKR Real go up and down completely randomly.
Pair Corralation between Chicago Atlantic and KKR Real
Given the investment horizon of 90 days Chicago Atlantic Real is expected to generate 0.55 times more return on investment than KKR Real. However, Chicago Atlantic Real is 1.83 times less risky than KKR Real. It trades about 0.06 of its potential returns per unit of risk. KKR Real Estate is currently generating about 0.01 per unit of risk. If you would invest 1,369 in Chicago Atlantic Real on August 27, 2024 and sell it today you would earn a total of 236.00 from holding Chicago Atlantic Real or generate 17.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chicago Atlantic Real vs. KKR Real Estate
Performance |
| Timeline |
| Chicago Atlantic Real |
| KKR Real Estate |
Chicago Atlantic and KKR Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chicago Atlantic and KKR Real
The main advantage of trading using opposite Chicago Atlantic and KKR Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chicago Atlantic position performs unexpectedly, KKR Real 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 Real will offset losses from the drop in KKR Real's long position.| Chicago Atlantic vs. KKR Real Estate | Chicago Atlantic vs. Ellington Residential Mortgage | Chicago Atlantic vs. Claros Mortgage Trust | Chicago Atlantic vs. Great Ajax Corp |
| KKR Real vs. Ellington Financial | KKR Real vs. Dynex Capital | KKR Real vs. Ares Commercial Real | KKR Real vs. Cherry Hill Mortgage |
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 Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |