Correlation Between Kayne Anderson and Fidelity Select
Can any of the company-specific risk be diversified away by investing in both Kayne Anderson and Fidelity Select 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 Fidelity Select 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 Fidelity Select Semiconductors, you can compare the effects of market volatilities on Kayne Anderson and Fidelity Select 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 Fidelity Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kayne Anderson and Fidelity Select.
Diversification Opportunities for Kayne Anderson and Fidelity Select
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kayne and Fidelity is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kayne Anderson Renewable and Fidelity Select Semiconductors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Select Semi 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 Fidelity Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Select Semi has no effect on the direction of Kayne Anderson i.e., Kayne Anderson and Fidelity Select go up and down completely randomly.
Pair Corralation between Kayne Anderson and Fidelity Select
Assuming the 90 days horizon Kayne Anderson Renewable is expected to generate 0.42 times more return on investment than Fidelity Select. However, Kayne Anderson Renewable is 2.35 times less risky than Fidelity Select. It trades about 0.32 of its potential returns per unit of risk. Fidelity Select Semiconductors is currently generating about 0.05 per unit of risk. If you would invest 946.00 in Kayne Anderson Renewable on September 3, 2024 and sell it today you would earn a total of 46.00 from holding Kayne Anderson Renewable or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kayne Anderson Renewable vs. Fidelity Select Semiconductors
Performance |
| Timeline |
| Kayne Anderson Renewable |
| Fidelity Select Semi |
Kayne Anderson and Fidelity Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kayne Anderson and Fidelity Select
The main advantage of trading using opposite Kayne Anderson and Fidelity Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kayne Anderson position performs unexpectedly, Fidelity Select 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 Fidelity Select will offset losses from the drop in Fidelity Select's long position.| Kayne Anderson vs. Delaware Limited Term Diversified | Kayne Anderson vs. The Gabelli Small | Kayne Anderson vs. Tax Managed Mid Small | Kayne Anderson vs. Blackrock Sm Cap |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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