Correlation Between Commonwealth Global and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Commonwealth Global 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 Commonwealth Global and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commonwealth Global Fund and Cohen Steers Realty, you can compare the effects of market volatilities on Commonwealth Global 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 Commonwealth Global with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commonwealth Global and Cohen Steers.
Diversification Opportunities for Commonwealth Global and Cohen Steers
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Commonwealth and Cohen is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Commonwealth Global Fund 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 Commonwealth Global 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 Commonwealth Global Fund 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 Commonwealth Global i.e., Commonwealth Global and Cohen Steers go up and down completely randomly.
Pair Corralation between Commonwealth Global and Cohen Steers
Assuming the 90 days horizon Commonwealth Global is expected to generate 1.3 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Commonwealth Global Fund is 1.48 times less risky than Cohen Steers. It trades about 0.06 of its potential returns per unit of risk. Cohen Steers Realty is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,705 in Cohen Steers Realty on August 30, 2024 and sell it today you would earn a total of 1,556 from holding Cohen Steers Realty or generate 27.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Commonwealth Global Fund vs. Cohen Steers Realty
Performance |
| Timeline |
| Commonwealth Global |
| Cohen Steers Realty |
Commonwealth Global and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commonwealth Global and Cohen Steers
The main advantage of trading using opposite Commonwealth Global and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commonwealth Global 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.| Commonwealth Global vs. Commonwealth Australianew Zealand | Commonwealth Global vs. Commonwealth Japan Fund | Commonwealth Global vs. Commonwealth Real Estate | Commonwealth Global vs. HUMANA INC |
| Cohen Steers vs. Commonwealth Global Fund | Cohen Steers vs. HUMANA INC | Cohen Steers vs. Aquagold International | Cohen Steers vs. Barloworld Ltd ADR |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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