Correlation Between Sims and Kkr Credit

Can any of the company-specific risk be diversified away by investing in both Sims 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 Sims and Kkr Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sims and Kkr Credit Income, you can compare the effects of market volatilities on Sims 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 Sims with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sims and Kkr Credit.

Diversification Opportunities for Sims and Kkr Credit

0.65

Correlation Coefficient

Sims  Kkr Credit

Poor diversification

The 3 months correlation between Sims and Kkr is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sims 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 Sims 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 Sims 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 Sims i.e., Sims and Kkr Credit go up and down completely randomly.

Pair Corralation between Sims and Kkr Credit

Assuming the 90 days trading horizon Sims is expected to generate 3.38 times more return on investment than Kkr Credit. However, Sims is 3.38 times more volatile than Kkr Credit Income. It trades about 0.15 of its potential returns per unit of risk. Kkr Credit Income is currently generating about 0.04 per unit of risk. If you would invest  1,068  in Sims on September 5, 2024 and sell it today you would earn a total of  243.00  from holding Sims or generate 22.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

Sims  vs.  Kkr Credit Income

Sims

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sims are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain primary indicators, Sims unveiled solid returns over the last few months and may actually be approaching a breakup point.

Kkr Credit Income

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kkr Credit Income are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental indicators, Kkr Credit is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Sims and Kkr Credit

The main advantage of trading using opposite Sims and Kkr Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sims 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.

The idea behind Sims and Kkr Credit Income pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.