Correlation Between KKR Credit and Murphy Oil
Can any of the company-specific risk be diversified away by investing in both KKR Credit and Murphy Oil 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 KKR Credit and Murphy Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KKR Credit Income and Murphy Oil, you can compare the effects of market volatilities on KKR Credit and Murphy Oil 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 KKR Credit with a short position of Murphy Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of KKR Credit and Murphy Oil.
Diversification Opportunities for KKR Credit and Murphy Oil
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between KKR and Murphy is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding KKR Credit Income and Murphy Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Murphy Oil and KKR Credit 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 KKR Credit Income are associated (or correlated) with Murphy Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Murphy Oil has no effect on the direction of KKR Credit i.e., KKR Credit and Murphy Oil go up and down completely randomly.
Pair Corralation between KKR Credit and Murphy Oil
Assuming the 90 days trading horizon KKR Credit Income is expected to under-perform the Murphy Oil. But the stock apears to be less risky and, when comparing its historical volatility, KKR Credit Income is 2.61 times less risky than Murphy Oil. The stock trades about -0.05 of its potential returns per unit of risk. The Murphy Oil is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,035 in Murphy Oil on September 6, 2025 and sell it today you would earn a total of 261.00 from holding Murphy Oil or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
KKR Credit Income vs. Murphy Oil
Performance |
| Timeline |
| KKR Credit Income |
| Murphy Oil |
KKR Credit and Murphy Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KKR Credit and Murphy Oil
The main advantage of trading using opposite KKR Credit and Murphy Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KKR Credit position performs unexpectedly, Murphy Oil 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 Murphy Oil will offset losses from the drop in Murphy Oil's long position.| KKR Credit vs. Apiam Animal Health | KKR Credit vs. Truscott Mining | KKR Credit vs. Resonance Health | KKR Credit vs. Sonic Healthcare |
| Murphy Oil vs. ITT Educational Services | Murphy Oil vs. 51Talk Online Education | Murphy Oil vs. NexPoint Diversified Real | Murphy Oil vs. VANGUARD FUNDS PLC |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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