Correlation Between SmartSet Automation and FS KKR

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

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

Diversification Opportunities for SmartSet Automation and FS KKR

-0.15

Correlation Coefficient

SmartSet Automation  FS KKR

Good diversification

The 3 months correlation between SmartSet and FSK is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding SmartSet Automation LLC 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 SmartSet Automation 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 SmartSet Automation LLC 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 SmartSet Automation i.e., SmartSet Automation and FS KKR go up and down completely randomly.

Pair Corralation between SmartSet Automation and FS KKR

Given the investment horizon of 90 days SmartSet Automation LLC is expected to generate 15.18 times more return on investment than FS KKR. However, SmartSet Automation is 15.18 times more volatile than FS KKR Capital. It trades about 0.02 of its potential returns per unit of risk. FS KKR Capital is currently generating about 0.08 per unit of risk. If you would invest  0.26  in SmartSet Automation LLC on May 9, 2025 and sell it today you would lose (0.12) from holding SmartSet Automation LLC or give up 46.15% of portfolio value over 90 days.

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

SmartSet Automation LLC  vs.  FS KKR Capital

SmartSet Automation LLC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SmartSet Automation LLC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, SmartSet Automation exhibited solid returns over the last few months and may actually be approaching a breakup point.

FS KKR Capital

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in FS KKR Capital are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, FS KKR is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with SmartSet Automation and FS KKR

The main advantage of trading using opposite SmartSet Automation and FS KKR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SmartSet Automation 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 SmartSet Automation LLC 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.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.