Correlation Between Kayne Anderson and Cohen
Can any of the company-specific risk be diversified away by investing in both Kayne Anderson and Cohen 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 Cohen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kayne Anderson MLP and Cohen And Steers, you can compare the effects of market volatilities on Kayne Anderson and Cohen 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 Cohen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kayne Anderson and Cohen.
Diversification Opportunities for Kayne Anderson and Cohen
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kayne and Cohen is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Kayne Anderson MLP and Cohen And Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen And Steers 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 MLP are associated (or correlated) with Cohen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen And Steers has no effect on the direction of Kayne Anderson i.e., Kayne Anderson and Cohen go up and down completely randomly.
Pair Corralation between Kayne Anderson and Cohen
Considering the 90-day investment horizon Kayne Anderson MLP is expected to generate 1.55 times more return on investment than Cohen. However, Kayne Anderson is 1.55 times more volatile than Cohen And Steers. It trades about 0.63 of its potential returns per unit of risk. Cohen And Steers is currently generating about 0.29 per unit of risk. If you would invest 1,142 in Kayne Anderson MLP on September 1, 2024 and sell it today you would earn a total of 209.00 from holding Kayne Anderson MLP or generate 18.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kayne Anderson MLP vs. Cohen And Steers
Performance |
| Timeline |
| Kayne Anderson MLP |
| Cohen And Steers |
Kayne Anderson and Cohen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kayne Anderson and Cohen
The main advantage of trading using opposite Kayne Anderson and Cohen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kayne Anderson position performs unexpectedly, Cohen 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 Cohen will offset losses from the drop in Cohen's long position.The idea behind Kayne Anderson MLP and Cohen And Steers 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.| Cohen vs. Cohen Steers Reit | Cohen vs. Dnp Select Income | Cohen vs. Cohen Steers Qualityome | Cohen vs. Pimco Dynamic 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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