Correlation Between JLEN Environmental and KKR Co
Can any of the company-specific risk be diversified away by investing in both JLEN Environmental and KKR Co 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 JLEN Environmental and KKR Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JLEN Environmental Assets and KKR Co LP, you can compare the effects of market volatilities on JLEN Environmental and KKR Co 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 JLEN Environmental with a short position of KKR Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and KKR Co.
Diversification Opportunities for JLEN Environmental and KKR Co
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JLEN and KKR is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and KKR Co LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KKR Co LP and JLEN Environmental 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 JLEN Environmental Assets are associated (or correlated) with KKR Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KKR Co LP has no effect on the direction of JLEN Environmental i.e., JLEN Environmental and KKR Co go up and down completely randomly.
Pair Corralation between JLEN Environmental and KKR Co
Assuming the 90 days trading horizon JLEN Environmental Assets is expected to under-perform the KKR Co. But the stock apears to be less risky and, when comparing its historical volatility, JLEN Environmental Assets is 1.59 times less risky than KKR Co. The stock trades about -0.25 of its potential returns per unit of risk. The KKR Co LP is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 14,120 in KKR Co LP on August 17, 2025 and sell it today you would lose (2,128) from holding KKR Co LP or give up 15.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JLEN Environmental Assets vs. KKR Co LP
Performance |
| Timeline |
| JLEN Environmental Assets |
| KKR Co LP |
JLEN Environmental and KKR Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLEN Environmental and KKR Co
The main advantage of trading using opposite JLEN Environmental and KKR Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLEN Environmental position performs unexpectedly, KKR Co 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 Co will offset losses from the drop in KKR Co's long position.| JLEN Environmental vs. Spotify Technology SA | JLEN Environmental vs. Universal Music Group | JLEN Environmental vs. Gear4music Plc | JLEN Environmental vs. Allianz Technology Trust |
| KKR Co vs. Carlyle Group | KKR Co vs. Ares Management LP | KKR Co vs. Blackstone Group | KKR Co vs. Blue Owl Capital |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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