Correlation Between Aquagold International and Kayne Anderson
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Kayne Anderson 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 Aquagold International and Kayne Anderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Kayne Anderson MLP, you can compare the effects of market volatilities on Aquagold International and Kayne Anderson 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 Aquagold International with a short position of Kayne Anderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Kayne Anderson.
Diversification Opportunities for Aquagold International and Kayne Anderson
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Kayne is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Kayne Anderson MLP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kayne Anderson MLP and Aquagold International 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 Aquagold International are associated (or correlated) with Kayne Anderson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kayne Anderson MLP has no effect on the direction of Aquagold International i.e., Aquagold International and Kayne Anderson go up and down completely randomly.
Pair Corralation between Aquagold International and Kayne Anderson
If you would invest 1,139 in Kayne Anderson MLP on August 31, 2024 and sell it today you would earn a total of 229.00 from holding Kayne Anderson MLP or generate 20.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aquagold International vs. Kayne Anderson MLP
Performance |
| Timeline |
| Aquagold International |
| Kayne Anderson MLP |
Aquagold International and Kayne Anderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Kayne Anderson
The main advantage of trading using opposite Aquagold International and Kayne Anderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Kayne Anderson 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 Kayne Anderson will offset losses from the drop in Kayne Anderson's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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