Correlation Between Technology One and Kkr Credit
Can any of the company-specific risk be diversified away by investing in both Technology One 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 Technology One and Kkr Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Technology One and Kkr Credit Income, you can compare the effects of market volatilities on Technology One 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 Technology One with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Technology One and Kkr Credit.
Diversification Opportunities for Technology One and Kkr Credit
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Technology and Kkr is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Technology One 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 Technology One 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 Technology One 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 Technology One i.e., Technology One and Kkr Credit go up and down completely randomly.
Pair Corralation between Technology One and Kkr Credit
Assuming the 90 days trading horizon Technology One is expected to generate 2.67 times more return on investment than Kkr Credit. However, Technology One is 2.67 times more volatile than Kkr Credit Income. It trades about 0.2 of its potential returns per unit of risk. Kkr Credit Income is currently generating about 0.07 per unit of risk. If you would invest 2,439 in Technology One on October 14, 2024 and sell it today you would earn a total of 596.00 from holding Technology One or generate 24.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Technology One vs. Kkr Credit Income
Performance |
| Timeline |
| Technology One |
| Kkr Credit Income |
Technology One and Kkr Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Technology One and Kkr Credit
The main advantage of trading using opposite Technology One and Kkr Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Technology One 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.| Technology One vs. Step One Clothing | Technology One vs. Fisher Paykel Healthcare | Technology One vs. Legacy Iron Ore | Technology One vs. Queste Communications |
| Kkr Credit vs. BlackWall Property Funds | Kkr Credit vs. Mirrabooka Investments | Kkr Credit vs. Vulcan Steel | Kkr Credit vs. Champion Iron |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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