Correlation Between Boston Partners and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Boston Partners 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 Boston Partners and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners Small and Cohen Steers Realty, you can compare the effects of market volatilities on Boston Partners 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 Boston Partners with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and Cohen Steers.
Diversification Opportunities for Boston Partners and Cohen Steers
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boston and Cohen is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners Small and Cohen Steers Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Realty and Boston Partners 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 Boston Partners Small 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 Realty has no effect on the direction of Boston Partners i.e., Boston Partners and Cohen Steers go up and down completely randomly.
Pair Corralation between Boston Partners and Cohen Steers
Assuming the 90 days horizon Boston Partners Small is expected to generate 1.37 times more return on investment than Cohen Steers. However, Boston Partners is 1.37 times more volatile than Cohen Steers Realty. It trades about 0.13 of its potential returns per unit of risk. Cohen Steers Realty is currently generating about -0.07 per unit of risk. If you would invest 2,731 in Boston Partners Small on September 13, 2024 and sell it today you would earn a total of 187.00 from holding Boston Partners Small or generate 6.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Partners Small vs. Cohen Steers Realty
Performance |
| Timeline |
| Boston Partners Small |
| Cohen Steers Realty |
Boston Partners and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and Cohen Steers
The main advantage of trading using opposite Boston Partners and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners 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.| Boston Partners vs. Aggressive Investors 1 | Boston Partners vs. Buffalo Small Cap | Boston Partners vs. Putnam Small Cap | Boston Partners vs. Dreyfus Strategic Value |
| Cohen Steers vs. Fpa Queens Road | Cohen Steers vs. Pace Smallmedium Value | Cohen Steers vs. Ab Small Cap | Cohen Steers vs. Boston Partners Small |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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