Correlation Between Cohen Steers and Atlas Corp
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Atlas Corp 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 Cohen Steers and Atlas Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers and Atlas Corp, you can compare the effects of market volatilities on Cohen Steers and Atlas Corp 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 Cohen Steers with a short position of Atlas Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Atlas Corp.
Diversification Opportunities for Cohen Steers and Atlas Corp
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cohen and Atlas is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers and Atlas Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Corp and Cohen Steers 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 Cohen Steers are associated (or correlated) with Atlas Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Corp has no effect on the direction of Cohen Steers i.e., Cohen Steers and Atlas Corp go up and down completely randomly.
Pair Corralation between Cohen Steers and Atlas Corp
Considering the 90-day investment horizon Cohen Steers is expected to generate 3.49 times more return on investment than Atlas Corp. However, Cohen Steers is 3.49 times more volatile than Atlas Corp. It trades about 0.2 of its potential returns per unit of risk. Atlas Corp is currently generating about 0.07 per unit of risk. If you would invest 7,018 in Cohen Steers on August 30, 2024 and sell it today you would earn a total of 3,445 from holding Cohen Steers or generate 49.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers vs. Atlas Corp
Performance |
| Timeline |
| Cohen Steers |
| Atlas Corp |
Cohen Steers and Atlas Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Atlas Corp
The main advantage of trading using opposite Cohen Steers and Atlas Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Atlas Corp 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 Atlas Corp will offset losses from the drop in Atlas Corp's long position.| Cohen Steers vs. Federated Premier Municipal | Cohen Steers vs. Blackrock Muniyield | Cohen Steers vs. Diamond Hill Investment | Cohen Steers vs. NXG NextGen Infrastructure |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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