Correlation Between Kayne Anderson and Ecofin Sustainable

Can any of the company-specific risk be diversified away by investing in both Kayne Anderson and Ecofin Sustainable 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 Ecofin Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kayne Anderson Midstreamenergy and Ecofin Sustainable And, you can compare the effects of market volatilities on Kayne Anderson and Ecofin Sustainable 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 Ecofin Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kayne Anderson and Ecofin Sustainable.

Diversification Opportunities for Kayne Anderson and Ecofin Sustainable

0.0

Correlation Coefficient

Kayne Anderson  Ecofin Sustainable

Pay attention - limited upside

The 3 months correlation between Kayne and Ecofin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kayne Anderson Midstreamenergy and Ecofin Sustainable And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecofin Sustainable And 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 Midstreamenergy are associated (or correlated) with Ecofin Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecofin Sustainable And has no effect on the direction of Kayne Anderson i.e., Kayne Anderson and Ecofin Sustainable go up and down completely randomly.

Pair Corralation between Kayne Anderson and Ecofin Sustainable

If you would invest  1,166  in Ecofin Sustainable And on December 25, 2024 and sell it today you would earn a total of  4.00  from holding Ecofin Sustainable And or generate 0.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Kayne Anderson Midstreamenergy  vs.  Ecofin Sustainable And

Kayne Anderson Midst

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kayne Anderson Midstreamenergy has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable primary indicators, Kayne Anderson is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Ecofin Sustainable And

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ecofin Sustainable And has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable basic indicators, Ecofin Sustainable is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Kayne Anderson and Ecofin Sustainable

The main advantage of trading using opposite Kayne Anderson and Ecofin Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kayne Anderson position performs unexpectedly, Ecofin Sustainable 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 Ecofin Sustainable will offset losses from the drop in Ecofin Sustainable's long position.

The idea behind Kayne Anderson Midstreamenergy and Ecofin Sustainable And 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.

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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.