Correlation Between Churchill Capital and KKR Acquisition
Can any of the company-specific risk be diversified away by investing in both Churchill Capital and KKR Acquisition 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 Churchill Capital and KKR Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Churchill Capital Corp and KKR Acquisition Holdings, you can compare the effects of market volatilities on Churchill Capital and KKR Acquisition 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 Churchill Capital with a short position of KKR Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Churchill Capital and KKR Acquisition.
Diversification Opportunities for Churchill Capital and KKR Acquisition
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Churchill and KKR is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Churchill Capital Corp and KKR Acquisition Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KKR Acquisition Holdings and Churchill Capital 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 Churchill Capital Corp are associated (or correlated) with KKR Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KKR Acquisition Holdings has no effect on the direction of Churchill Capital i.e., Churchill Capital and KKR Acquisition go up and down completely randomly.
Pair Corralation between Churchill Capital and KKR Acquisition
If you would invest 1,056 in Churchill Capital Corp on January 25, 2024 and sell it today you would earn a total of 15.00 from holding Churchill Capital Corp or generate 1.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 1.61% |
Values | Daily Returns |
Churchill Capital Corp vs. KKR Acquisition Holdings
Performance |
Timeline |
Churchill Capital Corp |
KKR Acquisition Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Churchill Capital and KKR Acquisition Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Churchill Capital and KKR Acquisition
The main advantage of trading using opposite Churchill Capital and KKR Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Churchill Capital position performs unexpectedly, KKR Acquisition 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 Acquisition will offset losses from the drop in KKR Acquisition's long position.The idea behind Churchill Capital Corp and KKR Acquisition Holdings 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.KKR Acquisition vs. American Environmental | KKR Acquisition vs. Shake Shack | KKR Acquisition vs. Dominos Pizza | KKR Acquisition vs. Insteel Industries |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |