Correlation Between Neuberger Berman and Kayne Anderson
Can any of the company-specific risk be diversified away by investing in both Neuberger Berman and Kayne Anderson 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 Neuberger Berman and Kayne Anderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neuberger Berman Mlp and Kayne Anderson MLP, you can compare the effects of market volatilities on Neuberger Berman and Kayne Anderson 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 Neuberger Berman with a short position of Kayne Anderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neuberger Berman and Kayne Anderson.
Diversification Opportunities for Neuberger Berman and Kayne Anderson
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Neuberger and Kayne is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Mlp and Kayne Anderson MLP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kayne Anderson MLP and Neuberger Berman 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 Neuberger Berman Mlp are associated (or correlated) with Kayne Anderson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kayne Anderson MLP has no effect on the direction of Neuberger Berman i.e., Neuberger Berman and Kayne Anderson go up and down completely randomly.
Pair Corralation between Neuberger Berman and Kayne Anderson
Considering the 90-day investment horizon Neuberger Berman is expected to generate 1.21 times less return on investment than Kayne Anderson. But when comparing it to its historical volatility, Neuberger Berman Mlp is 1.31 times less risky than Kayne Anderson. It trades about 0.52 of its potential returns per unit of risk. Kayne Anderson MLP is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 1,161 in Kayne Anderson MLP on August 28, 2024 and sell it today you would earn a total of 173.00 from holding Kayne Anderson MLP or generate 14.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neuberger Berman Mlp vs. Kayne Anderson MLP
Performance |
| Timeline |
| Neuberger Berman Mlp |
| Kayne Anderson MLP |
Neuberger Berman and Kayne Anderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neuberger Berman and Kayne Anderson
The main advantage of trading using opposite Neuberger Berman and Kayne Anderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neuberger Berman position performs unexpectedly, Kayne Anderson 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 Kayne Anderson will offset losses from the drop in Kayne Anderson's long position.| Neuberger Berman vs. Blackrock Muniyield | Neuberger Berman vs. Blackrock Muni Intermediate | Neuberger Berman vs. Blackrock Muniyield Quality | Neuberger Berman vs. Blackrock Muniyield Quality |
| Kayne Anderson vs. Tortoise Energy Infrastructure | Kayne Anderson vs. Cohen And Steers | Kayne Anderson vs. Aquagold International | Kayne Anderson vs. Morningstar Unconstrained Allocation |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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