Correlation Between Vinci Partners and KKR Real
Can any of the company-specific risk be diversified away by investing in both Vinci Partners 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 Vinci Partners and KKR Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vinci Partners Investments and KKR Real Estate, you can compare the effects of market volatilities on Vinci Partners 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 Vinci Partners with a short position of KKR Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vinci Partners and KKR Real.
Diversification Opportunities for Vinci Partners and KKR Real
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vinci and KKR is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Vinci Partners Investments 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 Vinci Partners 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 Vinci Partners Investments 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 Vinci Partners i.e., Vinci Partners and KKR Real go up and down completely randomly.
Pair Corralation between Vinci Partners and KKR Real
Given the investment horizon of 90 days Vinci Partners Investments is expected to generate 1.17 times more return on investment than KKR Real. However, Vinci Partners is 1.17 times more volatile than KKR Real Estate. It trades about 0.08 of its potential returns per unit of risk. KKR Real Estate is currently generating about -0.06 per unit of risk. If you would invest 998.00 in Vinci Partners Investments on August 24, 2024 and sell it today you would earn a total of 23.00 from holding Vinci Partners Investments or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vinci Partners Investments vs. KKR Real Estate
Performance |
| Timeline |
| Vinci Partners Inves |
| KKR Real Estate |
Vinci Partners and KKR Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vinci Partners and KKR Real
The main advantage of trading using opposite Vinci Partners and KKR Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vinci Partners 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.| Vinci Partners vs. Invesco Advantage MIT | Vinci Partners vs. Invesco Municipal Trust | Vinci Partners vs. Invesco California Value | Vinci Partners vs. Victory Capital Holdings |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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