Correlation Between TPG Telecom and Kkr Credit
Can any of the company-specific risk be diversified away by investing in both TPG Telecom 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 TPG Telecom and Kkr Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TPG Telecom and Kkr Credit Income, you can compare the effects of market volatilities on TPG Telecom 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 TPG Telecom with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of TPG Telecom and Kkr Credit.
Diversification Opportunities for TPG Telecom and Kkr Credit
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between TPG and Kkr is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding TPG Telecom 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 TPG Telecom 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 TPG Telecom 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 TPG Telecom i.e., TPG Telecom and Kkr Credit go up and down completely randomly.
Pair Corralation between TPG Telecom and Kkr Credit
Assuming the 90 days trading horizon TPG Telecom is expected to under-perform the Kkr Credit. In addition to that, TPG Telecom is 2.45 times more volatile than Kkr Credit Income. It trades about -0.08 of its total potential returns per unit of risk. Kkr Credit Income is currently generating about -0.03 per unit of volatility. If you would invest 235.00 in Kkr Credit Income on November 3, 2024 and sell it today you would lose (1.00) from holding Kkr Credit Income or give up 0.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TPG Telecom vs. Kkr Credit Income
Performance |
| Timeline |
| TPG Telecom |
| Kkr Credit Income |
TPG Telecom and Kkr Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TPG Telecom and Kkr Credit
The main advantage of trading using opposite TPG Telecom and Kkr Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TPG Telecom 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.| TPG Telecom vs. Technology One | TPG Telecom vs. Pure Foods Tasmania | TPG Telecom vs. Anteris Technologies | TPG Telecom vs. Ras Technology Holdings |
| 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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