Correlation Between Associated Banc and FS KKR

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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 Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Associated Banc Corp  vs.  FS KKR Capital

 Performance 
       Timeline  
Associated Banc Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Associated Banc Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Associated Banc is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.
FS KKR Capital 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days FS KKR Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in November 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

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.
The idea behind Associated Banc Corp and FS KKR Capital 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.
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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