Correlation Between Super Retail and Kkr Credit
Can any of the company-specific risk be diversified away by investing in both Super Retail 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 Super Retail and Kkr Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Super Retail Group and Kkr Credit Income, you can compare the effects of market volatilities on Super Retail 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 Super Retail with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Retail and Kkr Credit.
Diversification Opportunities for Super Retail and Kkr Credit
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Super and Kkr is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Super Retail Group 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 Super Retail 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 Super Retail Group 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 Super Retail i.e., Super Retail and Kkr Credit go up and down completely randomly.
Pair Corralation between Super Retail and Kkr Credit
Assuming the 90 days trading horizon Super Retail Group is expected to generate 1.92 times more return on investment than Kkr Credit. However, Super Retail is 1.92 times more volatile than Kkr Credit Income. It trades about 0.1 of its potential returns per unit of risk. Kkr Credit Income is currently generating about -0.03 per unit of risk. If you would invest 1,530 in Super Retail Group on November 3, 2024 and sell it today you would earn a total of 38.00 from holding Super Retail Group or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Retail Group vs. Kkr Credit Income
Performance |
| Timeline |
| Super Retail Group |
| Kkr Credit Income |
Super Retail and Kkr Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Retail and Kkr Credit
The main advantage of trading using opposite Super Retail and Kkr Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Retail 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.| Super Retail vs. Aneka Tambang Tbk | Super Retail vs. Macquarie Group | Super Retail vs. Macquarie Group Ltd | Super Retail vs. Challenger |
| Kkr Credit vs. ABACUS STORAGE KING | Kkr Credit vs. Ecofibre | Kkr Credit vs. iShares Global Healthcare | Kkr Credit vs. Adriatic Metals Plc |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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