Correlation Between Champlain Small and Kayne Anderson
Can any of the company-specific risk be diversified away by investing in both Champlain Small 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 Champlain Small and Kayne Anderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Small and Kayne Anderson Renewable, you can compare the effects of market volatilities on Champlain Small 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 Champlain Small with a short position of Kayne Anderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Small and Kayne Anderson.
Diversification Opportunities for Champlain Small and Kayne Anderson
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Champlain and Kayne is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Small and Kayne Anderson Renewable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kayne Anderson Renewable and Champlain Small 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 Champlain Small 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 Renewable has no effect on the direction of Champlain Small i.e., Champlain Small and Kayne Anderson go up and down completely randomly.
Pair Corralation between Champlain Small and Kayne Anderson
Assuming the 90 days horizon Champlain Small is expected to generate 1.99 times more return on investment than Kayne Anderson. However, Champlain Small is 1.99 times more volatile than Kayne Anderson Renewable. It trades about 0.3 of its potential returns per unit of risk. Kayne Anderson Renewable is currently generating about 0.23 per unit of risk. If you would invest 2,324 in Champlain Small on September 4, 2024 and sell it today you would earn a total of 231.00 from holding Champlain Small or generate 9.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champlain Small vs. Kayne Anderson Renewable
Performance |
| Timeline |
| Champlain Small |
| Kayne Anderson Renewable |
Champlain Small and Kayne Anderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Small and Kayne Anderson
The main advantage of trading using opposite Champlain Small and Kayne Anderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Small 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.| Champlain Small vs. The Hartford Midcap | Champlain Small vs. Mfs Emerging Markets | Champlain Small vs. Wells Fargo Special | Champlain Small vs. Washington Mutual Investors |
| Kayne Anderson vs. Invesco High Yield | Kayne Anderson vs. Nationwide Mid Cap | Kayne Anderson vs. Vanguard Equity Income | Kayne Anderson vs. Artisan High Income |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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