Correlation Between Cohen Steers and Gladstone Investment
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Gladstone Investment 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 Gladstone Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers and Gladstone Investment, you can compare the effects of market volatilities on Cohen Steers and Gladstone Investment 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 Gladstone Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Gladstone Investment.
Diversification Opportunities for Cohen Steers and Gladstone Investment
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and Gladstone is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers and Gladstone Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Investment 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 Gladstone Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Investment has no effect on the direction of Cohen Steers i.e., Cohen Steers and Gladstone Investment go up and down completely randomly.
Pair Corralation between Cohen Steers and Gladstone Investment
Considering the 90-day investment horizon Cohen Steers is expected to generate 1.67 times more return on investment than Gladstone Investment. However, Cohen Steers is 1.67 times more volatile than Gladstone Investment. It trades about 0.08 of its potential returns per unit of risk. Gladstone Investment is currently generating about 0.07 per unit of risk. If you would invest 6,228 in Cohen Steers on September 12, 2024 and sell it today you would earn a total of 3,737 from holding Cohen Steers or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers vs. Gladstone Investment
Performance |
| Timeline |
| Cohen Steers |
| Gladstone Investment |
Cohen Steers and Gladstone Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Gladstone Investment
The main advantage of trading using opposite Cohen Steers and Gladstone Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Gladstone Investment 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 Gladstone Investment will offset losses from the drop in Gladstone Investment's long position.| Cohen Steers vs. Gladstone Investment | Cohen Steers vs. Horizon Technology Finance | Cohen Steers vs. Stellus Capital Investment | Cohen Steers vs. Prospect Capital |
| Gladstone Investment vs. Horizon Technology Finance | Gladstone Investment vs. Stellus Capital Investment | Gladstone Investment vs. Prospect Capital | Gladstone Investment vs. Gladstone Capital |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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