Correlation Between Blackrock Enhanced and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Blackrock Enhanced 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 Blackrock Enhanced and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Enhanced Equity and Cohen Steers Reit, you can compare the effects of market volatilities on Blackrock Enhanced 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 Blackrock Enhanced with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Enhanced and Cohen Steers.
Diversification Opportunities for Blackrock Enhanced and Cohen Steers
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackrock and Cohen is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Enhanced Equity and Cohen Steers Reit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Reit and Blackrock Enhanced 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 Blackrock Enhanced Equity 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 Reit has no effect on the direction of Blackrock Enhanced i.e., Blackrock Enhanced and Cohen Steers go up and down completely randomly.
Pair Corralation between Blackrock Enhanced and Cohen Steers
Considering the 90-day investment horizon Blackrock Enhanced is expected to generate 1.18 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Blackrock Enhanced Equity is 1.07 times less risky than Cohen Steers. It trades about 0.35 of its potential returns per unit of risk. Cohen Steers Reit is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 2,048 in Cohen Steers Reit on November 9, 2024 and sell it today you would earn a total of 151.00 from holding Cohen Steers Reit or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Enhanced Equity vs. Cohen Steers Reit
Performance |
| Timeline |
| Blackrock Enhanced Equity |
| Cohen Steers Reit |
Blackrock Enhanced and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Enhanced and Cohen Steers
The main advantage of trading using opposite Blackrock Enhanced and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Enhanced 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.| Blackrock Enhanced vs. BlackRock Energy and | Blackrock Enhanced vs. BlackRock Capital Allocation | Blackrock Enhanced vs. BlackRock Utility Infrastructure | Blackrock Enhanced vs. Blackrock Enhanced Capital |
| Cohen Steers vs. Tekla Healthcare Investors | Cohen Steers vs. Tekla Life Sciences | Cohen Steers vs. XAI Octagon Floating | Cohen Steers vs. Tekla World Healthcare |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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