Correlation Between FS KKR and Visa
Can any of the company-specific risk be diversified away by investing in both FS KKR and Visa 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 Visa 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 Visa Class A, you can compare the effects of market volatilities on FS KKR and Visa 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 Visa. Check out your portfolio center. Please also check ongoing floating volatility patterns of FS KKR and Visa.
Diversification Opportunities for FS KKR and Visa
Almost no diversification
The 3 months correlation between FSK and Visa is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding FS KKR Capital and Visa Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visa Class A 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 Visa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visa Class A has no effect on the direction of FS KKR i.e., FS KKR and Visa go up and down completely randomly.
Pair Corralation between FS KKR and Visa
Considering the 90-day investment horizon FS KKR is expected to generate 1.76 times less return on investment than Visa. In addition to that, FS KKR is 1.03 times more volatile than Visa Class A. It trades about 0.15 of its total potential returns per unit of risk. Visa Class A is currently generating about 0.27 per unit of volatility. If you would invest 31,248 in Visa Class A on December 3, 2024 and sell it today you would earn a total of 5,023 from holding Visa Class A or generate 16.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
FS KKR Capital vs. Visa Class A
Performance |
Timeline |
FS KKR Capital |
Visa Class A |
FS KKR and Visa Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FS KKR and Visa
The main advantage of trading using opposite FS KKR and Visa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FS KKR position performs unexpectedly, Visa 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 Visa will offset losses from the drop in Visa's long position.FS KKR vs. BlackRock TCP Capital | FS KKR vs. Triplepoint Venture Growth | FS KKR vs. Sixth Street Specialty | FS KKR vs. Golub Capital BDC |
Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |