Correlation Between Mindax and Kkr Credit

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

By analyzing existing cross correlation between Mindax Limited and Kkr Credit Income, you can compare the effects of market volatilities on Mindax and Kkr Credit 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 Mindax with a short position of Kkr Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mindax and Kkr Credit.

Diversification Opportunities for Mindax and Kkr Credit

0.04

Correlation Coefficient

Mindax  Kkr Credit

Significant diversification

The 3 months correlation between Mindax and Kkr is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Mindax Limited and Kkr Credit Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kkr Credit Income and Mindax 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 Mindax Limited are associated (or correlated) with Kkr Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kkr Credit Income has no effect on the direction of Mindax i.e., Mindax and Kkr Credit go up and down completely randomly.

Pair Corralation between Mindax and Kkr Credit

Assuming the 90 days trading horizon Mindax Limited is expected to generate 4.8 times more return on investment than Kkr Credit. However, Mindax is 4.8 times more volatile than Kkr Credit Income. It trades about 0.13 of its potential returns per unit of risk. Kkr Credit Income is currently generating about 0.0 per unit of risk. If you would invest  4.00  in Mindax Limited on December 20, 2024 and sell it today you would earn a total of  0.80  from holding Mindax Limited or generate 20.0% return on investment over 90 days.

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

Mindax Limited  vs.  Kkr Credit Income

Mindax Limited

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mindax Limited are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Mindax unveiled solid returns over the last few months and may actually be approaching a breakup point.

Kkr Credit Income

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Mindax and Kkr Credit

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

The idea behind Mindax Limited and Kkr Credit Income 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.