Correlation Between Aberdeen Global and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Aberdeen Global 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 Aberdeen Global and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Global Premier and Cohen Steers Qualityome, you can compare the effects of market volatilities on Aberdeen Global 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 Aberdeen Global with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Global and Cohen Steers.
Diversification Opportunities for Aberdeen Global and Cohen Steers
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aberdeen and Cohen is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Global Premier and Cohen Steers Qualityome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Qualityome and Aberdeen Global 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 Aberdeen Global Premier 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 Qualityome has no effect on the direction of Aberdeen Global i.e., Aberdeen Global and Cohen Steers go up and down completely randomly.
Pair Corralation between Aberdeen Global and Cohen Steers
Considering the 90-day investment horizon Aberdeen Global Premier is expected to under-perform the Cohen Steers. But the fund apears to be less risky and, when comparing its historical volatility, Aberdeen Global Premier is 1.16 times less risky than Cohen Steers. The fund trades about -0.07 of its potential returns per unit of risk. The Cohen Steers Qualityome is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,378 in Cohen Steers Qualityome on August 25, 2024 and sell it today you would lose (15.00) from holding Cohen Steers Qualityome or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen Global Premier vs. Cohen Steers Qualityome
Performance |
| Timeline |
| Aberdeen Global Premier |
| Cohen Steers Qualityome |
Aberdeen Global and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Global and Cohen Steers
The main advantage of trading using opposite Aberdeen Global and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Global 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.| Aberdeen Global vs. Aberdeen Total Dynamic | Aberdeen Global vs. Alliancebernstein National Municipal | Aberdeen Global vs. Aberdeen Standard Global | Aberdeen Global vs. BlackRock Energy and |
| Cohen Steers vs. Cohen And Steers | Cohen Steers vs. Reaves Utility If | Cohen Steers vs. Cohen Steers Total | Cohen Steers vs. Pimco Dynamic Income |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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