Correlation Between BROADWIND ENRGY and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both BROADWIND ENRGY and Cohen Steers 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 BROADWIND ENRGY and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BROADWIND ENRGY and Cohen Steers, you can compare the effects of market volatilities on BROADWIND ENRGY and Cohen Steers 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 BROADWIND ENRGY with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of BROADWIND ENRGY and Cohen Steers.
Diversification Opportunities for BROADWIND ENRGY and Cohen Steers
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BROADWIND and Cohen is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding BROADWIND ENRGY and Cohen Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers and BROADWIND ENRGY 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 BROADWIND ENRGY are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers has no effect on the direction of BROADWIND ENRGY i.e., BROADWIND ENRGY and Cohen Steers go up and down completely randomly.
Pair Corralation between BROADWIND ENRGY and Cohen Steers
Assuming the 90 days trading horizon BROADWIND ENRGY is expected to generate 3.63 times less return on investment than Cohen Steers. In addition to that, BROADWIND ENRGY is 2.09 times more volatile than Cohen Steers. It trades about 0.02 of its total potential returns per unit of risk. Cohen Steers is currently generating about 0.17 per unit of volatility. If you would invest 7,850 in Cohen Steers on September 4, 2024 and sell it today you would earn a total of 1,700 from holding Cohen Steers or generate 21.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
BROADWIND ENRGY vs. Cohen Steers
Performance |
| Timeline |
| BROADWIND ENRGY |
| Cohen Steers |
BROADWIND ENRGY and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BROADWIND ENRGY and Cohen Steers
The main advantage of trading using opposite BROADWIND ENRGY and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BROADWIND ENRGY position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| BROADWIND ENRGY vs. TOTAL GABON | BROADWIND ENRGY vs. Walgreens Boots Alliance | BROADWIND ENRGY vs. Peak Resources Limited |
| Cohen Steers vs. CarsalesCom | Cohen Steers vs. BROADWIND ENRGY | Cohen Steers vs. GOLD ROAD RES | Cohen Steers vs. Transportadora de Gas |
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 Stocks Directory module to find actively traded stocks across global markets.
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