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 International, 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
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AGDAX and Cohen is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ab High Income and Cohen Steers International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Interna 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 Interna 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 Income is expected to generate 0.21 times more return on investment than Cohen Steers. However, Ab High Income is 4.73 times less risky than Cohen Steers. It trades about 0.23 of its potential returns per unit of risk. Cohen Steers International is currently generating about -0.01 per unit of risk. If you would invest 668.00 in Ab High Income on September 1, 2024 and sell it today you would earn a total of 37.00 from holding Ab High Income or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Ab High Income vs. Cohen Steers International
Performance |
| Timeline |
| Ab High Income |
| Cohen Steers Interna |
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. Ab Global E | Ab High vs. Ab Global E | Ab High vs. Ab Global E | Ab High vs. Ab Minnesota Portfolio |
| Cohen Steers vs. Siit Emerging Markets | Cohen Steers vs. Vanguard Developed Markets | Cohen Steers vs. Aqr Long Short Equity | Cohen Steers vs. Doubleline Emerging Markets |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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