Correlation Between KKR Co and Bank of New York
Can any of the company-specific risk be diversified away by investing in both KKR Co and Bank of New York 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 Co and Bank of New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KKR Co LP and The Bank of, you can compare the effects of market volatilities on KKR Co and Bank of New York 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 Co with a short position of Bank of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of KKR Co and Bank of New York.
Diversification Opportunities for KKR Co and Bank of New York
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KKR and Bank is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding KKR Co LP and The Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of New York and KKR Co 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 Co LP are associated (or correlated) with Bank of New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of New York has no effect on the direction of KKR Co i.e., KKR Co and Bank of New York go up and down completely randomly.
Pair Corralation between KKR Co and Bank of New York
Considering the 90-day investment horizon KKR Co is expected to generate 1.41 times less return on investment than Bank of New York. In addition to that, KKR Co is 1.73 times more volatile than The Bank of. It trades about 0.09 of its total potential returns per unit of risk. The Bank of is currently generating about 0.23 per unit of volatility. If you would invest 8,953 in The Bank of on June 9, 2025 and sell it today you would earn a total of 1,416 from holding The Bank of or generate 15.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KKR Co LP vs. The Bank of
Performance |
| Timeline |
| KKR Co LP |
| Bank of New York |
KKR Co and Bank of New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KKR Co and Bank of New York
The main advantage of trading using opposite KKR Co and Bank of New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KKR Co position performs unexpectedly, Bank of New York 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 Bank of New York will offset losses from the drop in Bank of New York's long position.| KKR Co vs. Carlyle Group | KKR Co vs. Ares Management LP | KKR Co vs. Blackstone Group | KKR Co vs. Blue Owl Capital |
| Bank of New York vs. Northern Trust | Bank of New York vs. Invesco Plc | Bank of New York vs. Franklin Resources | Bank of New York vs. T Rowe Price |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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