Correlation Between ETRADE Financial and FS KKR
Can any of the company-specific risk be diversified away by investing in both ETRADE Financial and FS KKR 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 ETRADE Financial and FS KKR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETRADE Financial LLC and FS KKR Capital, you can compare the effects of market volatilities on ETRADE Financial and FS KKR 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 ETRADE Financial with a short position of FS KKR. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETRADE Financial and FS KKR.
Diversification Opportunities for ETRADE Financial and FS KKR
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ETRADE and FSK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ETRADE Financial LLC and FS KKR Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FS KKR Capital and ETRADE Financial 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 ETRADE Financial LLC are associated (or correlated) with FS KKR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FS KKR Capital has no effect on the direction of ETRADE Financial i.e., ETRADE Financial and FS KKR go up and down completely randomly.
Pair Corralation between ETRADE Financial and FS KKR
If you would invest 1,943 in FS KKR Capital on February 12, 2024 and sell it today you would earn a total of 44.00 from holding FS KKR Capital or generate 2.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
ETRADE Financial LLC vs. FS KKR Capital
Performance |
Timeline |
ETRADE Financial LLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
FS KKR Capital |
ETRADE Financial and FS KKR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ETRADE Financial and FS KKR
The main advantage of trading using opposite ETRADE Financial and FS KKR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETRADE Financial position performs unexpectedly, FS KKR 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 FS KKR will offset losses from the drop in FS KKR's long position.ETRADE Financial vs. Marine Products | ETRADE Financial vs. Ferrari NV | ETRADE Financial vs. Thor Industries | ETRADE Financial vs. American Axle Manufacturing |
FS KKR vs. BlackRock TCP Capital | FS KKR vs. Triplepoint Venture Growth | FS KKR vs. Sixth Street Specialty | FS KKR vs. Golub Capital BDC |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |