Correlation Between XAI Octagon and Kkr Income

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

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

Diversification Opportunities for XAI Octagon and Kkr Income

-0.87

Correlation Coefficient

XAI Octagon  Kkr Income

Pay attention - limited upside

The 3 months correlation between XAI and Kkr is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding XAI Octagon Floating and Kkr Income Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kkr Income Opportunities and XAI Octagon 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 XAI Octagon Floating are associated (or correlated) with Kkr Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kkr Income Opportunities has no effect on the direction of XAI Octagon i.e., XAI Octagon and Kkr Income go up and down completely randomly.

Pair Corralation between XAI Octagon and Kkr Income

Given the investment horizon of 90 days XAI Octagon is expected to generate 1.08 times less return on investment than Kkr Income. In addition to that, XAI Octagon is 1.24 times more volatile than Kkr Income Opportunities. It trades about 0.08 of its total potential returns per unit of risk. Kkr Income Opportunities is currently generating about 0.1 per unit of volatility. If you would invest  908.00  in Kkr Income Opportunities on September 3, 2024 and sell it today you would earn a total of  431.00  from holding Kkr Income Opportunities or generate 47.47% return on investment over 90 days.

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

XAI Octagon Floating  vs.  Kkr Income Opportunities

XAI Octagon Floating

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in XAI Octagon Floating are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable essential indicators, XAI Octagon is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Kkr Income Opportunities

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kkr Income Opportunities has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy forward indicators, Kkr Income is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with XAI Octagon and Kkr Income

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

The idea behind XAI Octagon Floating and Kkr Income Opportunities 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.