KKR Co LP has roughly 27.37
B in cash with (6.19
B) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 46.19.
The company secures a Beta (Market Risk) of 1.8905, which conveys a somewhat significant risk relative to the market. Let's try to break down what KKR Co's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, KKR Co will likely underperform. Although it is important to respect
KKR Co LP price patterns, it is better to be realistic regarding the information on the equity's historical
price patterns. The approach towards estimating
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By inspecting
KKR Co LP technical indicators, you can now evaluate if the expected return of 0.0051% will be sustainable into the future.
KKR Co LP currently secures a risk of 3.27%. Please verify KKR Co LP
variance,
value at risk, as well as the
relationship between the Value At Risk and
skewness to decide if KKR Co LP will be following its current price movements.
Investing in KKR Co, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding KKR Co along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of KKR Co's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as KKR Co. Your research has to be compared to or analyzed against KKR Co's peers to derive any actionable benefits. When done correctly, KKR Co's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in KKR Co LP.
How important is KKR Co's Liquidity
KKR Co
financial leverage refers to using borrowed capital as a funding source to finance KKR Co LP ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. KKR Co financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to KKR Co's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of KKR Co's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between KKR Co's total debt and its cash.
KKR Co Gross Profit
KKR Co Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing KKR Co previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show KKR Co Gross Profit growth over the last 10 years. Please check KKR Co's
gross profit and other
fundamental indicators for more details.
KKR Co Correlation with Peers
Investors in KKR can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in KKR Co LP. Diversification will allow for the same portfolio return with reduced risk. The correlation table of KKR Co and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities KKR is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of KKR for more details
A Deeper Perspective On KKR Co
We consider KKR Co very steady.
KKR Co LP has Sharpe Ratio of 0.0016, which conveys that the firm had 0.0016% of return per unit of volatility over the last 3 months. Our approach towards estimating the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-one
technical indicators for KKR Co, which you can use to evaluate the future volatility of the firm. Please verify KKR Co LP
risk adjusted performance of 0.077, and Mean Deviation of 2.6 to check out if the risk estimate we provide is consistent with the expected return of 0.0051%.
KKR Co has a small chance to finish above $57 in 2 months
Latest total risk alpha is at 0.21. KKR Co LP shows above-average downside volatility for the selected time horizon. We advise investors to inspect KKR Co LP further and ensure that all market timing and asset allocation strategies are consistent with the estimation of KKR Co future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure KKR Co's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact KKR Co's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
KKR Co Implied Volatility
Our Conclusion on KKR Co
When is the right time to buy or sell KKR Co LP? Buying stocks such as KKR Co isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
To conclude, as of the 2nd of August 2022, our analysis shows that KKR Co actively responds to the market. The enterprise is
undervalued and projects
close to average chance of distress for the next 2 years. Our concluding 90 days buy-hold-sell recommendation on the enterprise is
Strong Buy.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of KKR Co LP. Please refer to our
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