Correlation Between American Mutual and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both American Mutual 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 American Mutual and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Mutual Fund and Cohen Steers International, you can compare the effects of market volatilities on American Mutual 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 American Mutual with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Mutual and Cohen Steers.
Diversification Opportunities for American Mutual and Cohen Steers
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Cohen is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding American Mutual Fund 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 American Mutual 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 American Mutual Fund 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 American Mutual i.e., American Mutual and Cohen Steers go up and down completely randomly.
Pair Corralation between American Mutual and Cohen Steers
Assuming the 90 days horizon American Mutual Fund is expected to generate 0.69 times more return on investment than Cohen Steers. However, American Mutual Fund is 1.46 times less risky than Cohen Steers. It trades about 0.32 of its potential returns per unit of risk. Cohen Steers International is currently generating about -0.09 per unit of risk. If you would invest 5,792 in American Mutual Fund on September 3, 2024 and sell it today you would earn a total of 232.00 from holding American Mutual Fund or generate 4.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Mutual Fund vs. Cohen Steers International
Performance |
| Timeline |
| American Mutual |
| Cohen Steers Interna |
American Mutual and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Mutual and Cohen Steers
The main advantage of trading using opposite American Mutual and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Mutual 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.| American Mutual vs. Amcap Fund Class | American Mutual vs. American Balanced Fund | American Mutual vs. New Perspective Fund | American Mutual vs. New World Fund |
| Cohen Steers vs. Siit Large Cap | Cohen Steers vs. Avantis Large Cap | Cohen Steers vs. American Mutual Fund | Cohen Steers vs. Qs Large Cap |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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