Correlation Between Johnson Johnson and KKR Real
Can any of the company-specific risk be diversified away by investing in both Johnson Johnson and KKR Real 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 Johnson Johnson and KKR Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Johnson Johnson and KKR Real Estate, you can compare the effects of market volatilities on Johnson Johnson and KKR Real 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 Johnson Johnson with a short position of KKR Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Johnson Johnson and KKR Real.
Diversification Opportunities for Johnson Johnson and KKR Real
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Johnson and KKR is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Johnson Johnson and KKR Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KKR Real Estate and Johnson Johnson 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 Johnson Johnson are associated (or correlated) with KKR Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KKR Real Estate has no effect on the direction of Johnson Johnson i.e., Johnson Johnson and KKR Real go up and down completely randomly.
Pair Corralation between Johnson Johnson and KKR Real
Considering the 90-day investment horizon Johnson Johnson is expected to generate 1.13 times more return on investment than KKR Real. However, Johnson Johnson is 1.13 times more volatile than KKR Real Estate. It trades about 0.22 of its potential returns per unit of risk. KKR Real Estate is currently generating about -0.11 per unit of risk. If you would invest 17,497 in Johnson Johnson on August 18, 2025 and sell it today you would earn a total of 2,096 from holding Johnson Johnson or generate 11.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Johnson Johnson vs. KKR Real Estate
Performance |
| Timeline |
| Johnson Johnson |
| KKR Real Estate |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Johnson Johnson and KKR Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Johnson Johnson and KKR Real
The main advantage of trading using opposite Johnson Johnson and KKR Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Johnson Johnson position performs unexpectedly, KKR Real 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 Real will offset losses from the drop in KKR Real's long position.| Johnson Johnson vs. AbbVie Inc | Johnson Johnson vs. Novartis AG ADR | Johnson Johnson vs. Novo Nordisk AS | Johnson Johnson vs. Merck Company |
| KKR Real vs. Apollo Commercial Real | KKR Real vs. Ladder Capital Corp | KKR Real vs. Ellington Financial | KKR Real vs. TPG RE Finance |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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