Correlation Between FS KKR and BlackRock New
Can any of the company-specific risk be diversified away by investing in both FS KKR and BlackRock New 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 FS KKR and BlackRock New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FS KKR Capital and BlackRock New York, you can compare the effects of market volatilities on FS KKR and BlackRock New 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 FS KKR with a short position of BlackRock New. Check out your portfolio center. Please also check ongoing floating volatility patterns of FS KKR and BlackRock New.
Diversification Opportunities for FS KKR and BlackRock New
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FSK and BlackRock is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding FS KKR Capital and BlackRock New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock New York and FS KKR 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 FS KKR Capital are associated (or correlated) with BlackRock New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock New York has no effect on the direction of FS KKR i.e., FS KKR and BlackRock New go up and down completely randomly.
Pair Corralation between FS KKR and BlackRock New
Considering the 90-day investment horizon FS KKR Capital is expected to generate 1.58 times more return on investment than BlackRock New. However, FS KKR is 1.58 times more volatile than BlackRock New York. It trades about 0.04 of its potential returns per unit of risk. BlackRock New York is currently generating about 0.01 per unit of risk. If you would invest 1,548 in FS KKR Capital on February 1, 2024 and sell it today you would earn a total of 364.00 from holding FS KKR Capital or generate 23.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
FS KKR Capital vs. BlackRock New York
Performance |
Timeline |
FS KKR Capital |
BlackRock New York |
FS KKR and BlackRock New Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FS KKR and BlackRock New
The main advantage of trading using opposite FS KKR and BlackRock New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FS KKR position performs unexpectedly, BlackRock New 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 BlackRock New will offset losses from the drop in BlackRock New's long position.FS KKR vs. Pimco Corporate Income | FS KKR vs. Pimco Income Strategy | FS KKR vs. Pcm Fund | FS KKR vs. Pimco High Income |
BlackRock New vs. Pimco Corporate Income | BlackRock New vs. Pimco Income Strategy | BlackRock New vs. Pcm Fund | BlackRock New vs. Pimco High Income |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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