Correlation Between Associated Banc and FS KKR
Can any of the company-specific risk be diversified away by investing in both Associated Banc 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 Associated Banc and FS KKR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Associated Banc Corp and FS KKR Capital, you can compare the effects of market volatilities on Associated Banc 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 Associated Banc with a short position of FS KKR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Associated Banc and FS KKR.
Diversification Opportunities for Associated Banc and FS KKR
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Associated and FSK is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Associated Banc Corp 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 Associated Banc 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 Associated Banc Corp 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 Associated Banc i.e., Associated Banc and FS KKR go up and down completely randomly.
Pair Corralation between Associated Banc and FS KKR
Considering the 90-day investment horizon Associated Banc Corp is expected to generate 1.09 times more return on investment than FS KKR. However, Associated Banc is 1.09 times more volatile than FS KKR Capital. It trades about 0.01 of its potential returns per unit of risk. FS KKR Capital is currently generating about -0.31 per unit of risk. If you would invest 2,538 in Associated Banc Corp on July 25, 2025 and sell it today you would lose (6.00) from holding Associated Banc Corp or give up 0.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Associated Banc Corp vs. FS KKR Capital
Performance |
| Timeline |
| Associated Banc Corp |
| FS KKR Capital |
Associated Banc and FS KKR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Associated Banc and FS KKR
The main advantage of trading using opposite Associated Banc and FS KKR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated Banc 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.| Associated Banc vs. ServisFirst Bancshares | Associated Banc vs. Grupo Aval | Associated Banc vs. Texas Capital Bancshares | Associated Banc vs. BancFirst |
| 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 Valuation module to check real value of public entities based on technical and fundamental data.
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