Correlation Between Interactive Brokers and FS KKR
Can any of the company-specific risk be diversified away by investing in both Interactive Brokers 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 Interactive Brokers and FS KKR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interactive Brokers Group and FS KKR Capital, you can compare the effects of market volatilities on Interactive Brokers 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 Interactive Brokers with a short position of FS KKR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interactive Brokers and FS KKR.
Diversification Opportunities for Interactive Brokers and FS KKR
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Interactive and FSK is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Interactive Brokers Group 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 Interactive Brokers 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 Interactive Brokers Group 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 Interactive Brokers i.e., Interactive Brokers and FS KKR go up and down completely randomly.
Pair Corralation between Interactive Brokers and FS KKR
Given the investment horizon of 90 days Interactive Brokers Group is expected to generate 2.15 times more return on investment than FS KKR. However, Interactive Brokers is 2.15 times more volatile than FS KKR Capital. It trades about 0.15 of its potential returns per unit of risk. FS KKR Capital is currently generating about 0.22 per unit of risk. If you would invest 11,024 in Interactive Brokers Group on January 26, 2024 and sell it today you would earn a total of 540.00 from holding Interactive Brokers Group or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interactive Brokers Group vs. FS KKR Capital
Performance |
| Timeline |
| Interactive Brokers |
| FS KKR Capital |
Interactive Brokers and FS KKR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interactive Brokers and FS KKR
The main advantage of trading using opposite Interactive Brokers and FS KKR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interactive Brokers 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.| Interactive Brokers vs. Kingdee International Software | Interactive Brokers vs. Uber Technologies | Interactive Brokers vs. Summit Hotel Properties | Interactive Brokers vs. Where Food Comes |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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