Correlation Between Worldwide Healthcare and FS KKR
Can any of the company-specific risk be diversified away by investing in both Worldwide Healthcare 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 Worldwide Healthcare and FS KKR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Worldwide Healthcare Trust and FS KKR Capital, you can compare the effects of market volatilities on Worldwide Healthcare 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 Worldwide Healthcare with a short position of FS KKR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Worldwide Healthcare and FS KKR.
Diversification Opportunities for Worldwide Healthcare and FS KKR
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Worldwide and FSK is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Worldwide Healthcare Trust 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 Worldwide Healthcare 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 Worldwide Healthcare Trust 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 Worldwide Healthcare i.e., Worldwide Healthcare and FS KKR go up and down completely randomly.
Pair Corralation between Worldwide Healthcare and FS KKR
Assuming the 90 days trading horizon Worldwide Healthcare Trust is expected to generate 0.65 times more return on investment than FS KKR. However, Worldwide Healthcare Trust is 1.53 times less risky than FS KKR. It trades about 0.3 of its potential returns per unit of risk. FS KKR Capital is currently generating about -0.08 per unit of risk. If you would invest 33,191 in Worldwide Healthcare Trust on August 30, 2025 and sell it today you would earn a total of 6,159 from holding Worldwide Healthcare Trust or generate 18.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Worldwide Healthcare Trust vs. FS KKR Capital
Performance |
| Timeline |
| Worldwide Healthcare |
| FS KKR Capital |
Worldwide Healthcare and FS KKR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Worldwide Healthcare and FS KKR
The main advantage of trading using opposite Worldwide Healthcare and FS KKR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Worldwide Healthcare 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.| Worldwide Healthcare vs. Iron Mountain | Worldwide Healthcare vs. Coor Service Management | Worldwide Healthcare vs. Take Two Interactive Software | Worldwide Healthcare vs. Zurich Insurance Group |
| FS KKR vs. BCP Investment Corp | FS KKR vs. Trio Tech International | FS KKR vs. Minerals Technologies | FS KKR vs. Lithium Tech Cp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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