Correlation Between Cohen and Kayne Anderson
Can any of the company-specific risk be diversified away by investing in both Cohen 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 Cohen and Kayne Anderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen And Steers and Kayne Anderson MLP, you can compare the effects of market volatilities on Cohen 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 Cohen with a short position of Kayne Anderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen and Kayne Anderson.
Diversification Opportunities for Cohen and Kayne Anderson
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cohen and Kayne is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Cohen And Steers 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 Cohen 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 Cohen And Steers 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 Cohen i.e., Cohen and Kayne Anderson go up and down completely randomly.
Pair Corralation between Cohen and Kayne Anderson
Considering the 90-day investment horizon Cohen And Steers is expected to under-perform the Kayne Anderson. But the fund apears to be less risky and, when comparing its historical volatility, Cohen And Steers is 1.54 times less risky than Kayne Anderson. The fund trades about -0.03 of its potential returns per unit of risk. The Kayne Anderson MLP is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,057 in Kayne Anderson MLP on September 12, 2024 and sell it today you would earn a total of 229.00 from holding Kayne Anderson MLP or generate 21.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cohen And Steers vs. Kayne Anderson MLP
Performance |
Timeline |
Cohen And Steers |
Kayne Anderson MLP |
Cohen and Kayne Anderson Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cohen and Kayne Anderson
The main advantage of trading using opposite Cohen and Kayne Anderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen 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.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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |