Correlation Between Kayne Anderson and Pimco Income
Can any of the company-specific risk be diversified away by investing in both Kayne Anderson and Pimco Income 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 Pimco Income 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 Pimco Income Strategy, you can compare the effects of market volatilities on Kayne Anderson and Pimco Income 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 Pimco Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kayne Anderson and Pimco Income.
Diversification Opportunities for Kayne Anderson and Pimco Income
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kayne and Pimco is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kayne Anderson Renewable and Pimco Income Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Income Strategy 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 Pimco Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Income Strategy has no effect on the direction of Kayne Anderson i.e., Kayne Anderson and Pimco Income go up and down completely randomly.
Pair Corralation between Kayne Anderson and Pimco Income
Assuming the 90 days horizon Kayne Anderson is expected to generate 1.73 times less return on investment than Pimco Income. In addition to that, Kayne Anderson is 1.45 times more volatile than Pimco Income Strategy. It trades about 0.05 of its total potential returns per unit of risk. Pimco Income Strategy is currently generating about 0.11 per unit of volatility. If you would invest 586.00 in Pimco Income Strategy on September 3, 2024 and sell it today you would earn a total of 165.00 from holding Pimco Income Strategy or generate 28.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kayne Anderson Renewable vs. Pimco Income Strategy
Performance |
| Timeline |
| Kayne Anderson Renewable |
| Pimco Income Strategy |
Kayne Anderson and Pimco Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kayne Anderson and Pimco Income
The main advantage of trading using opposite Kayne Anderson and Pimco Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kayne Anderson position performs unexpectedly, Pimco Income 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 Pimco Income will offset losses from the drop in Pimco Income'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 |
| Pimco Income vs. Pcm Fund | Pimco Income vs. Pimco Corporate Income | Pimco Income vs. Pimco Global Stocksplus | Pimco Income vs. Pimco 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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