Correlation Between FS KKR and Aperture Health

Can any of the company-specific risk be diversified away by investing in both FS KKR and Aperture Health 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 Aperture Health 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 Aperture Health, you can compare the effects of market volatilities on FS KKR and Aperture Health 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 Aperture Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of FS KKR and Aperture Health.

Diversification Opportunities for FS KKR and Aperture Health

0.0

Correlation Coefficient

FS KKR  Aperture Health

Pay attention - limited upside

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

Pair Corralation between FS KKR and Aperture Health

Considering the 90-day investment horizon FS KKR is expected to generate 6.09 times less return on investment than Aperture Health. But when comparing it to its historical volatility, FS KKR Capital is 14.08 times less risky than Aperture Health. It trades about 0.08 of its potential returns per unit of risk. Aperture Health is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  12.00  in Aperture Health on October 11, 2024 and sell it today you would lose (6.10) from holding Aperture Health or give up 50.83% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

FS KKR Capital  vs.  Aperture Health

FS KKR Capital

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FS KKR Capital are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, FS KKR may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Aperture Health

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aperture Health has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Aperture Health is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with FS KKR and Aperture Health

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

The idea behind FS KKR Capital and Aperture Health 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.