Correlation Between Deutsche Global and Kayne Anderson
Can any of the company-specific risk be diversified away by investing in both Deutsche Global 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 Deutsche Global and Kayne Anderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Global Infrastructure and Kayne Anderson Renewable, you can compare the effects of market volatilities on Deutsche Global 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 Deutsche Global with a short position of Kayne Anderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Global and Kayne Anderson.
Diversification Opportunities for Deutsche Global and Kayne Anderson
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DEUTSCHE and Kayne is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Global Infrastructure and Kayne Anderson Renewable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kayne Anderson Renewable and Deutsche Global 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 Deutsche Global Infrastructure 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 Renewable has no effect on the direction of Deutsche Global i.e., Deutsche Global and Kayne Anderson go up and down completely randomly.
Pair Corralation between Deutsche Global and Kayne Anderson
Assuming the 90 days horizon Deutsche Global Infrastructure is expected to generate 0.81 times more return on investment than Kayne Anderson. However, Deutsche Global Infrastructure is 1.24 times less risky than Kayne Anderson. It trades about 0.05 of its potential returns per unit of risk. Kayne Anderson Renewable is currently generating about -0.01 per unit of risk. If you would invest 1,442 in Deutsche Global Infrastructure on August 30, 2024 and sell it today you would earn a total of 289.00 from holding Deutsche Global Infrastructure or generate 20.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Global Infrastructure vs. Kayne Anderson Renewable
Performance |
| Timeline |
| Deutsche Global Infr |
| Kayne Anderson Renewable |
Deutsche Global and Kayne Anderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Global and Kayne Anderson
The main advantage of trading using opposite Deutsche Global and Kayne Anderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Global 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.| Deutsche Global vs. Fidelity Managed Retirement | Deutsche Global vs. Qs Moderate Growth | Deutsche Global vs. Pgim Conservative Retirement | Deutsche Global vs. Moderately Aggressive Balanced |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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