Correlation Between Kayne Anderson and Qs Global
Can any of the company-specific risk be diversified away by investing in both Kayne Anderson and Qs Global 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 Global 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 Global Equity, you can compare the effects of market volatilities on Kayne Anderson and Qs Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kayne Anderson and Qs Global.
Diversification Opportunities for Kayne Anderson and Qs Global
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kayne and SILLX is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kayne Anderson Renewable and Qs Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qs Global Equity 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qs Global Equity has no effect on the direction of Kayne Anderson i.e., Kayne Anderson and Qs Global go up and down completely randomly.
Pair Corralation between Kayne Anderson and Qs Global
Assuming the 90 days horizon Kayne Anderson Renewable is expected to under-perform the Qs Global. In addition to that, Kayne Anderson is 1.2 times more volatile than Qs Global Equity. It trades about -0.01 of its total potential returns per unit of risk. Qs Global Equity is currently generating about 0.1 per unit of volatility. If you would invest 1,792 in Qs Global Equity on August 30, 2024 and sell it today you would earn a total of 825.00 from holding Qs Global Equity or generate 46.04% 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. Qs Global Equity
Performance |
| Timeline |
| Kayne Anderson Renewable |
| Qs Global Equity |
Kayne Anderson and Qs Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kayne Anderson and Qs Global
The main advantage of trading using opposite Kayne Anderson and Qs Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kayne Anderson position performs unexpectedly, Qs Global 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 Global will offset losses from the drop in Qs Global's long position.The idea behind Kayne Anderson Renewable and Qs Global Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Qs Global vs. Commonwealth Real Estate | Qs Global vs. American Century Global | Qs Global vs. Virtus Real Estate | Qs Global vs. Franklin Real Estate |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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