Correlation Between Apple and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Apple 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 Apple and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Cohen Steers Realty, you can compare the effects of market volatilities on Apple 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 Apple with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Cohen Steers.
Diversification Opportunities for Apple and Cohen Steers
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apple and Cohen is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Cohen Steers Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Realty and Apple 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 Apple Inc 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 Realty has no effect on the direction of Apple i.e., Apple and Cohen Steers go up and down completely randomly.
Pair Corralation between Apple and Cohen Steers
Given the investment horizon of 90 days Apple Inc is expected to under-perform the Cohen Steers. In addition to that, Apple is 1.44 times more volatile than Cohen Steers Realty. It trades about -0.46 of its total potential returns per unit of risk. Cohen Steers Realty is currently generating about 0.06 per unit of volatility. If you would invest 6,534 in Cohen Steers Realty on October 23, 2024 and sell it today you would earn a total of 75.00 from holding Cohen Steers Realty or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Apple Inc vs. Cohen Steers Realty
Performance |
| Timeline |
| Apple Inc |
| Cohen Steers Realty |
Apple and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Cohen Steers
The main advantage of trading using opposite Apple and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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.The idea behind Apple Inc and Cohen Steers Realty 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.| Cohen Steers vs. Ab High Income | Cohen Steers vs. Gmo High Yield | Cohen Steers vs. Catalystsmh High Income | Cohen Steers vs. Siit High Yield |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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