Correlation Between KKR Co and Silvercorp Metals

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

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

Diversification Opportunities for KKR Co and Silvercorp Metals

-0.88

Correlation Coefficient

KKR Co  Silvercorp Metals

Pay attention - limited upside

The 3 months correlation between KKR and Silvercorp is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding KKR Co LP and Silvercorp Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silvercorp Metals and KKR Co 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 KKR Co LP are associated (or correlated) with Silvercorp Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silvercorp Metals has no effect on the direction of KKR Co i.e., KKR Co and Silvercorp Metals go up and down completely randomly.

Pair Corralation between KKR Co and Silvercorp Metals

Considering the 90-day investment horizon KKR Co LP is expected to under-perform the Silvercorp Metals. But the stock apears to be less risky and, when comparing its historical volatility, KKR Co LP is 1.1 times less risky than Silvercorp Metals. The stock trades about -0.13 of its potential returns per unit of risk. The Silvercorp Metals is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  291.00  in Silvercorp Metals on December 29, 2024 and sell it today you would earn a total of  97.00  from holding Silvercorp Metals or generate 33.33% return on investment over 90 days.

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

KKR Co LP  vs.  Silvercorp Metals

KKR Co LP

Risk-Adjusted Performance

Very Weak

Over the last 90 days KKR Co LP has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Silvercorp Metals

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Silvercorp Metals are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Silvercorp Metals displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KKR Co and Silvercorp Metals

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

The idea behind KKR Co LP and Silvercorp Metals 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.