Correlation Between Cohen Steers and Princeton Capital
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Princeton Capital 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 Princeton Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers and Princeton Capital, you can compare the effects of market volatilities on Cohen Steers and Princeton Capital 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 Princeton Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Princeton Capital.
Diversification Opportunities for Cohen Steers and Princeton Capital
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cohen and Princeton is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers and Princeton Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Princeton Capital 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 Princeton Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Princeton Capital has no effect on the direction of Cohen Steers i.e., Cohen Steers and Princeton Capital go up and down completely randomly.
Pair Corralation between Cohen Steers and Princeton Capital
Considering the 90-day investment horizon Cohen Steers is expected to generate 1.25 times less return on investment than Princeton Capital. But when comparing it to its historical volatility, Cohen Steers is 8.43 times less risky than Princeton Capital. It trades about 0.22 of its potential returns per unit of risk. Princeton Capital is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Princeton Capital on September 1, 2024 and sell it today you would lose (1.00) from holding Princeton Capital or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers vs. Princeton Capital
Performance |
| Timeline |
| Cohen Steers |
| Princeton Capital |
Cohen Steers and Princeton Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Princeton Capital
The main advantage of trading using opposite Cohen Steers and Princeton Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Princeton Capital 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 Princeton Capital will offset losses from the drop in Princeton Capital'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 |
| Princeton Capital vs. Flow Capital Corp | Princeton Capital vs. Blackhawk Growth Corp | Princeton Capital vs. Urbana | Princeton Capital vs. Guardian Capital Group |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |