Correlation Between Brandes Small and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Brandes Small 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 Brandes Small and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brandes Small Cap and Cohen Steers Closed, you can compare the effects of market volatilities on Brandes Small 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 Brandes Small with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brandes Small and Cohen Steers.
Diversification Opportunities for Brandes Small and Cohen Steers
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brandes and Cohen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Brandes Small Cap and Cohen Steers Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Closed and Brandes Small 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 Brandes Small Cap 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 Closed has no effect on the direction of Brandes Small i.e., Brandes Small and Cohen Steers go up and down completely randomly.
Pair Corralation between Brandes Small and Cohen Steers
Assuming the 90 days horizon Brandes Small Cap is expected to generate 1.28 times more return on investment than Cohen Steers. However, Brandes Small is 1.28 times more volatile than Cohen Steers Closed. It trades about 0.15 of its potential returns per unit of risk. Cohen Steers Closed is currently generating about 0.01 per unit of risk. If you would invest 1,595 in Brandes Small Cap on November 9, 2024 and sell it today you would earn a total of 51.00 from holding Brandes Small Cap or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brandes Small Cap vs. Cohen Steers Closed
Performance |
| Timeline |
| Brandes Small Cap |
| Cohen Steers Closed |
Brandes Small and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brandes Small and Cohen Steers
The main advantage of trading using opposite Brandes Small and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brandes Small 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.| Brandes Small vs. Columbia Vertible Securities | Brandes Small vs. Fidelity Sai Convertible | Brandes Small vs. Allianzgi Convertible Income | Brandes Small vs. Gabelli Convertible And |
| Cohen Steers vs. Cohen Steers Total | Cohen Steers vs. Cohen Steers Reit | Cohen Steers vs. Cohen And Steers | Cohen Steers vs. First Trust Specialty |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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