Correlation Between Bruce Fund and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Bruce Fund 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 Bruce Fund and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bruce Fund Bruce and Cohen Steers Limited, you can compare the effects of market volatilities on Bruce Fund 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 Bruce Fund with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bruce Fund and Cohen Steers.
Diversification Opportunities for Bruce Fund and Cohen Steers
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BRUCE and Cohen is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bruce Fund Bruce and Cohen Steers Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Limited and Bruce Fund 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 Bruce Fund Bruce 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 Limited has no effect on the direction of Bruce Fund i.e., Bruce Fund and Cohen Steers go up and down completely randomly.
Pair Corralation between Bruce Fund and Cohen Steers
Assuming the 90 days horizon Bruce Fund Bruce is expected to under-perform the Cohen Steers. In addition to that, Bruce Fund is 1.16 times more volatile than Cohen Steers Limited. It trades about -0.05 of its total potential returns per unit of risk. Cohen Steers Limited is currently generating about 0.03 per unit of volatility. If you would invest 2,050 in Cohen Steers Limited on November 1, 2024 and sell it today you would earn a total of 26.00 from holding Cohen Steers Limited or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bruce Fund Bruce vs. Cohen Steers Limited
Performance |
| Timeline |
| Bruce Fund Bruce |
| Cohen Steers Limited |
Bruce Fund and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bruce Fund and Cohen Steers
The main advantage of trading using opposite Bruce Fund and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bruce Fund 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.| Bruce Fund vs. James Balanced Golden | Bruce Fund vs. Sprott Gold Equity | Bruce Fund vs. Great West Goldman Sachs | Bruce Fund vs. Franklin Gold Precious |
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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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