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 Midstreamenergy, 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

0.0

Correlation Coefficient

Neuberger Berman  Kayne Anderson

Pay attention - limited upside

The 3 months correlation between Neuberger and Kayne is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Neuberger Berman Mlp and Kayne Anderson Midstreamenergy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kayne Anderson Midst 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 Midst 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

If you would invest  860.00  in Neuberger Berman Mlp on December 28, 2024 and sell it today you would earn a total of  43.00  from holding Neuberger Berman Mlp or generate 5.0% return on investment over 90 days.

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

Neuberger Berman Mlp  vs.  Kayne Anderson Midstreamenergy

Neuberger Berman Mlp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Neuberger Berman Mlp are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. Despite quite persistent primary indicators, Neuberger Berman is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

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.

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.

The idea behind Neuberger Berman Mlp and Kayne Anderson Midstreamenergy 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.