Correlation Between Amanasu Techs and KKR Co

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

By analyzing existing cross correlation between Amanasu Techs Corp and KKR Co LP, you can compare the effects of market volatilities on Amanasu Techs and KKR Co 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 Amanasu Techs with a short position of KKR Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amanasu Techs and KKR Co.

Diversification Opportunities for Amanasu Techs and KKR Co

0.0

Correlation Coefficient

Amanasu Techs  KKR Co

Pay attention - limited upside

The 3 months correlation between Amanasu and KKR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amanasu Techs Corp and KKR Co LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KKR Co LP and Amanasu Techs 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 Amanasu Techs Corp are associated (or correlated) with KKR Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KKR Co LP has no effect on the direction of Amanasu Techs i.e., Amanasu Techs and KKR Co go up and down completely randomly.

Pair Corralation between Amanasu Techs and KKR Co

If you would invest  14,057  in KKR Co LP on October 26, 2024 and sell it today you would earn a total of  2,094  from holding KKR Co LP or generate 14.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

Amanasu Techs Corp  vs.  KKR Co LP

Amanasu Techs Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amanasu Techs Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Amanasu Techs is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

KKR Co LP

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KKR Co LP are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile forward-looking signals, KKR Co reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amanasu Techs and KKR Co

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

The idea behind Amanasu Techs Corp and KKR Co LP 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.