Correlation Between Voya Cbre and Kayne Anderson
Can any of the company-specific risk be diversified away by investing in both Voya Cbre 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 Voya Cbre and Kayne Anderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Cbre Global and Kayne Anderson Renewable, you can compare the effects of market volatilities on Voya Cbre 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 Voya Cbre with a short position of Kayne Anderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Cbre and Kayne Anderson.
Diversification Opportunities for Voya Cbre and Kayne Anderson
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Voya and Kayne is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Voya Cbre Global 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 Voya Cbre 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 Voya Cbre Global 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 Voya Cbre i.e., Voya Cbre and Kayne Anderson go up and down completely randomly.
Pair Corralation between Voya Cbre and Kayne Anderson
Assuming the 90 days horizon Voya Cbre Global is expected to generate 0.78 times more return on investment than Kayne Anderson. However, Voya Cbre Global is 1.28 times less risky than Kayne Anderson. It trades about 0.04 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 1,208 in Voya Cbre Global on August 30, 2024 and sell it today you would earn a total of 191.00 from holding Voya Cbre Global or generate 15.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Cbre Global vs. Kayne Anderson Renewable
Performance |
| Timeline |
| Voya Cbre Global |
| Kayne Anderson Renewable |
Voya Cbre and Kayne Anderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Cbre and Kayne Anderson
The main advantage of trading using opposite Voya Cbre and Kayne Anderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Cbre 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.| Voya Cbre vs. HUMANA INC | Voya Cbre vs. Aquagold International | Voya Cbre vs. Barloworld Ltd ADR | Voya Cbre 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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