Correlation Between Ab High and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Ab High 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 High 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 High Income and Cohen Steers Real, you can compare the effects of market volatilities on Ab High 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 High with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab High and Cohen Steers.
Diversification Opportunities for Ab High and Cohen Steers
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between AGDAX and Cohen is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Ab High Income and Cohen Steers Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Real and Ab High 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 High Income 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 Real has no effect on the direction of Ab High i.e., Ab High and Cohen Steers go up and down completely randomly.
Pair Corralation between Ab High and Cohen Steers
Assuming the 90 days horizon Ab High is expected to generate 1.27 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Ab High Income is 3.82 times less risky than Cohen Steers. It trades about 0.14 of its potential returns per unit of risk. Cohen Steers Real is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,223 in Cohen Steers Real on September 2, 2024 and sell it today you would earn a total of 315.00 from holding Cohen Steers Real or generate 25.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab High Income vs. Cohen Steers Real
Performance |
| Timeline |
| Ab High Income |
| Cohen Steers Real |
Ab High and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab High and Cohen Steers
The main advantage of trading using opposite Ab High and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab High 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 High vs. Technology Ultrasector Profund | Ab High vs. Science Technology Fund | Ab High vs. Janus Global Technology | Ab High vs. Blackrock Science Technology |
| Cohen Steers vs. Commodityrealreturn Strategy Fund | Cohen Steers vs. Oakmark International Fund | Cohen Steers vs. Third Avenue Real | Cohen Steers vs. Large Cap Fund |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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