Correlation Between Cannae Holdings and FS KKR
Can any of the company-specific risk be diversified away by investing in both Cannae Holdings 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 Cannae Holdings and FS KKR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cannae Holdings and FS KKR Capital, you can compare the effects of market volatilities on Cannae Holdings 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 Cannae Holdings with a short position of FS KKR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cannae Holdings and FS KKR.
Diversification Opportunities for Cannae Holdings and FS KKR
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cannae and FSK is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cannae Holdings 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 Cannae Holdings 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 Cannae Holdings 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 Cannae Holdings i.e., Cannae Holdings and FS KKR go up and down completely randomly.
Pair Corralation between Cannae Holdings and FS KKR
Given the investment horizon of 90 days Cannae Holdings is expected to generate 1.53 times less return on investment than FS KKR. In addition to that, Cannae Holdings is 2.53 times more volatile than FS KKR Capital. It trades about 0.11 of its total potential returns per unit of risk. FS KKR Capital is currently generating about 0.43 per unit of volatility. If you would invest 1,882 in FS KKR Capital on February 15, 2024 and sell it today you would earn a total of 134.00 from holding FS KKR Capital or generate 7.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cannae Holdings vs. FS KKR Capital
Performance |
Timeline |
Cannae Holdings |
FS KKR Capital |
Cannae Holdings and FS KKR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cannae Holdings and FS KKR
The main advantage of trading using opposite Cannae Holdings and FS KKR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cannae Holdings 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.Cannae Holdings vs. Canoo Holdings | Cannae Holdings vs. Burgerfi International | Cannae Holdings vs. Landsea Homes | Cannae Holdings vs. Nuvve Holding Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |