Correlation Between Ab Bond and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Ab Bond 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 Ab Bond and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Bond Inflation and Cohen Steers Dividend, you can compare the effects of market volatilities on Ab Bond 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 Ab Bond with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Bond and Cohen Steers.
Diversification Opportunities for Ab Bond and Cohen Steers
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ABNCX and Cohen is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ab Bond Inflation and Cohen Steers Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Dividend and Ab Bond 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 Ab Bond Inflation 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 Dividend has no effect on the direction of Ab Bond i.e., Ab Bond and Cohen Steers go up and down completely randomly.
Pair Corralation between Ab Bond and Cohen Steers
Assuming the 90 days horizon Ab Bond Inflation is expected to generate 0.47 times more return on investment than Cohen Steers. However, Ab Bond Inflation is 2.11 times less risky than Cohen Steers. It trades about 0.05 of its potential returns per unit of risk. Cohen Steers Dividend is currently generating about 0.02 per unit of risk. If you would invest 940.00 in Ab Bond Inflation on September 4, 2024 and sell it today you would earn a total of 66.00 from holding Ab Bond Inflation or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 30.51% |
| Values | Daily Returns |
Ab Bond Inflation vs. Cohen Steers Dividend
Performance |
| Timeline |
| Ab Bond Inflation |
| Cohen Steers Dividend |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ab Bond and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Bond and Cohen Steers
The main advantage of trading using opposite Ab Bond and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Bond 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.| Ab Bond vs. Msift High Yield | Ab Bond vs. American Century High | Ab Bond vs. Prudential High Yield | Ab Bond vs. Pioneer High Yield |
| Cohen Steers vs. Rationalpier 88 Convertible | Cohen Steers vs. Advent Claymore Convertible | Cohen Steers vs. Lord Abbett Convertible | Cohen Steers vs. Virtus Convertible |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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