Correlation Between Blackstone and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Blackstone 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 Blackstone and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Cohen Steers, you can compare the effects of market volatilities on Blackstone 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 Blackstone with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Cohen Steers.
Diversification Opportunities for Blackstone and Cohen Steers
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blackstone and Cohen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Cohen Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers and Blackstone 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 Blackstone Group 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 has no effect on the direction of Blackstone i.e., Blackstone and Cohen Steers go up and down completely randomly.
Pair Corralation between Blackstone and Cohen Steers
Assuming the 90 days trading horizon Blackstone Group is expected to generate 1.02 times more return on investment than Cohen Steers. However, Blackstone is 1.02 times more volatile than Cohen Steers. It trades about 0.22 of its potential returns per unit of risk. Cohen Steers is currently generating about 0.17 per unit of risk. If you would invest 10,825 in Blackstone Group on September 2, 2024 and sell it today you would earn a total of 7,295 from holding Blackstone Group or generate 67.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Cohen Steers
Performance |
| Timeline |
| Blackstone Group |
| Cohen Steers |
Blackstone and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Cohen Steers
The main advantage of trading using opposite Blackstone and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone 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.| Blackstone vs. UMC Electronics Co | Blackstone vs. ARROW ELECTRONICS | Blackstone vs. KIMBALL ELECTRONICS | Blackstone vs. AEGEAN AIRLINES |
| Cohen Steers vs. FAST RETAIL ADR | Cohen Steers vs. Pick n Pay | Cohen Steers vs. PICKN PAY STORES | Cohen Steers vs. CARSALESCOM |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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