Correlation Between Black Oak and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Black Oak 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 Black Oak and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Black Oak Emerging and Cohen Steers Low, you can compare the effects of market volatilities on Black Oak 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 Black Oak with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Oak and Cohen Steers.
Diversification Opportunities for Black Oak and Cohen Steers
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Black and Cohen is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Black Oak Emerging and Cohen Steers Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Low and Black Oak 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 Black Oak Emerging 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 Low has no effect on the direction of Black Oak i.e., Black Oak and Cohen Steers go up and down completely randomly.
Pair Corralation between Black Oak and Cohen Steers
Assuming the 90 days horizon Black Oak is expected to generate 1.33 times less return on investment than Cohen Steers. In addition to that, Black Oak is 14.9 times more volatile than Cohen Steers Low. It trades about 0.02 of its total potential returns per unit of risk. Cohen Steers Low is currently generating about 0.33 per unit of volatility. If you would invest 884.00 in Cohen Steers Low on November 3, 2024 and sell it today you would earn a total of 72.00 from holding Cohen Steers Low or generate 8.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Black Oak Emerging vs. Cohen Steers Low
Performance |
| Timeline |
| Black Oak Emerging |
| Cohen Steers Low |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Black Oak and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Oak and Cohen Steers
The main advantage of trading using opposite Black Oak and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Oak 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.| Black Oak vs. Red Oak Technology | Black Oak vs. Pin Oak Equity | Black Oak vs. White Oak Select | Black Oak vs. Live Oak Health |
| Cohen Steers vs. Gmo Global Equity | Cohen Steers vs. Wisdomtree Siegel Global | Cohen Steers vs. Scharf Global Opportunity | Cohen Steers vs. Kinetics Global Fund |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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