Correlation Between GAMCO Global and Kayne Anderson
Can any of the company-specific risk be diversified away by investing in both GAMCO Global 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 GAMCO Global and Kayne Anderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMCO Global Gold and Kayne Anderson MLP, you can compare the effects of market volatilities on GAMCO Global 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 GAMCO Global with a short position of Kayne Anderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMCO Global and Kayne Anderson.
Diversification Opportunities for GAMCO Global and Kayne Anderson
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GAMCO and Kayne is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding GAMCO Global Gold 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 GAMCO Global 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 GAMCO Global Gold 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 GAMCO Global i.e., GAMCO Global and Kayne Anderson go up and down completely randomly.
Pair Corralation between GAMCO Global and Kayne Anderson
Assuming the 90 days trading horizon GAMCO Global Gold is expected to under-perform the Kayne Anderson. But the preferred stock apears to be less risky and, when comparing its historical volatility, GAMCO Global Gold is 2.5 times less risky than Kayne Anderson. The preferred stock trades about -0.17 of its potential returns per unit of risk. The Kayne Anderson MLP is currently generating about 0.46 of returns per unit of risk over similar time horizon. If you would invest 1,161 in Kayne Anderson MLP on August 29, 2024 and sell it today you would earn a total of 167.00 from holding Kayne Anderson MLP or generate 14.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMCO Global Gold vs. Kayne Anderson MLP
Performance |
| Timeline |
| GAMCO Global Gold |
| Kayne Anderson MLP |
GAMCO Global and Kayne Anderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMCO Global and Kayne Anderson
The main advantage of trading using opposite GAMCO Global and Kayne Anderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMCO Global 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.| GAMCO Global vs. The Gabelli Equity | GAMCO Global vs. The Gabelli Equity | GAMCO Global vs. General American Investors | GAMCO Global vs. The Gabelli Utility |
| Kayne Anderson vs. Tortoise Energy Infrastructure | Kayne Anderson vs. Cohen And Steers | Kayne Anderson vs. Aquagold International | Kayne Anderson vs. Morningstar Unconstrained Allocation |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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