Correlation Between Axos Financial and FS KKR

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

By analyzing existing cross correlation between Axos Financial and FS KKR Capital, you can compare the effects of market volatilities on Axos Financial and FS KKR 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 Axos Financial with a short position of FS KKR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axos Financial and FS KKR.

Diversification Opportunities for Axos Financial and FS KKR

0.16

Correlation Coefficient

Axos Financial  FS KKR

Average diversification

The 3 months correlation between Axos and FSK is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Axos Financial and FS KKR Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FS KKR Capital and Axos Financial 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 Axos Financial are associated (or correlated) with FS KKR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FS KKR Capital has no effect on the direction of Axos Financial i.e., Axos Financial and FS KKR go up and down completely randomly.

Pair Corralation between Axos Financial and FS KKR

Allowing for the 90-day total investment horizon Axos Financial is expected to generate 1.15 times more return on investment than FS KKR. However, Axos Financial is 1.15 times more volatile than FS KKR Capital. It trades about 0.21 of its potential returns per unit of risk. FS KKR Capital is currently generating about -0.15 per unit of risk. If you would invest  7,200  in Axos Financial on May 17, 2025 and sell it today you would earn a total of  1,707  from holding Axos Financial or generate 23.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Axos Financial  vs.  FS KKR Capital

Axos Financial

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Axos Financial are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Axos Financial showed solid returns over the last few months and may actually be approaching a breakup point.

FS KKR Capital

Risk-Adjusted Performance

Weakest

Over the last 90 days FS KKR Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Axos Financial and FS KKR

The main advantage of trading using opposite Axos Financial and FS KKR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axos Financial position performs unexpectedly, FS KKR 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 FS KKR will offset losses from the drop in FS KKR's long position.

The idea behind Axos Financial and FS KKR Capital 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.

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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.