Correlation Between XAI Octagon and Kkr Income
Can any of the company-specific risk be diversified away by investing in both XAI Octagon and Kkr Income 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 XAI Octagon and Kkr Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XAI Octagon Floating and Kkr Income Opportunities, you can compare the effects of market volatilities on XAI Octagon and Kkr Income 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 XAI Octagon with a short position of Kkr Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of XAI Octagon and Kkr Income.
Diversification Opportunities for XAI Octagon and Kkr Income
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XAI and Kkr is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding XAI Octagon Floating and Kkr Income Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kkr Income Opportunities and XAI Octagon 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 XAI Octagon Floating are associated (or correlated) with Kkr Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kkr Income Opportunities has no effect on the direction of XAI Octagon i.e., XAI Octagon and Kkr Income go up and down completely randomly.
Pair Corralation between XAI Octagon and Kkr Income
Given the investment horizon of 90 days XAI Octagon Floating is expected to generate 0.46 times more return on investment than Kkr Income. However, XAI Octagon Floating is 2.16 times less risky than Kkr Income. It trades about 0.31 of its potential returns per unit of risk. Kkr Income Opportunities is currently generating about -0.21 per unit of risk. If you would invest 684.00 in XAI Octagon Floating on August 31, 2024 and sell it today you would earn a total of 18.00 from holding XAI Octagon Floating or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XAI Octagon Floating vs. Kkr Income Opportunities
Performance |
| Timeline |
| XAI Octagon Floating |
| Kkr Income Opportunities |
XAI Octagon and Kkr Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XAI Octagon and Kkr Income
The main advantage of trading using opposite XAI Octagon and Kkr Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XAI Octagon position performs unexpectedly, Kkr Income 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 Income will offset losses from the drop in Kkr Income's long position.| XAI Octagon vs. Oxford Lane Capital | XAI Octagon vs. Capital Southwest | XAI Octagon vs. Cornerstone Strategic Return | XAI Octagon vs. Cornerstone Strategic Value |
| Kkr Income vs. Nuveen Floating Rate | Kkr Income vs. Blackrock Muni Intermediate | Kkr Income vs. Eaton Vance Senior | Kkr Income vs. Nuveen Dynamic Municipal |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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