Correlation Between Kayne Anderson and Qs Small
Can any of the company-specific risk be diversified away by investing in both Kayne Anderson and Qs Small 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 Kayne Anderson and Qs Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kayne Anderson Renewable and Qs Small Capitalization, you can compare the effects of market volatilities on Kayne Anderson and Qs Small 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 Kayne Anderson with a short position of Qs Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kayne Anderson and Qs Small.
Diversification Opportunities for Kayne Anderson and Qs Small
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kayne and LMBMX is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Kayne Anderson Renewable and Qs Small Capitalization in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qs Small Capitalization and Kayne Anderson 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 Kayne Anderson Renewable are associated (or correlated) with Qs Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qs Small Capitalization has no effect on the direction of Kayne Anderson i.e., Kayne Anderson and Qs Small go up and down completely randomly.
Pair Corralation between Kayne Anderson and Qs Small
Assuming the 90 days horizon Kayne Anderson is expected to generate 17.17 times less return on investment than Qs Small. But when comparing it to its historical volatility, Kayne Anderson Renewable is 1.21 times less risky than Qs Small. It trades about 0.0 of its potential returns per unit of risk. Qs Small Capitalization is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,120 in Qs Small Capitalization on September 12, 2024 and sell it today you would earn a total of 351.00 from holding Qs Small Capitalization or generate 31.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kayne Anderson Renewable vs. Qs Small Capitalization
Performance |
| Timeline |
| Kayne Anderson Renewable |
| Qs Small Capitalization |
Kayne Anderson and Qs Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kayne Anderson and Qs Small
The main advantage of trading using opposite Kayne Anderson and Qs Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kayne Anderson position performs unexpectedly, Qs Small 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 Qs Small will offset losses from the drop in Qs Small's long position.| Kayne Anderson vs. Multimedia Portfolio Multimedia | Kayne Anderson vs. Ab Select Equity | Kayne Anderson vs. Huber Capital Equity | Kayne Anderson vs. Artisan Select Equity |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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