Correlation Between Aam Select and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Aam Select 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 Aam Select and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aam Select Income and Cohen Steers Mlp, you can compare the effects of market volatilities on Aam Select 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 Aam Select with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aam Select and Cohen Steers.
Diversification Opportunities for Aam Select and Cohen Steers
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aam and Cohen is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aam Select Income and Cohen Steers Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Mlp and Aam Select 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 Aam Select Income 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 Mlp has no effect on the direction of Aam Select i.e., Aam Select and Cohen Steers go up and down completely randomly.
Pair Corralation between Aam Select and Cohen Steers
Assuming the 90 days horizon Aam Select is expected to generate 2.13 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Aam Select Income is 2.36 times less risky than Cohen Steers. It trades about 0.06 of its potential returns per unit of risk. Cohen Steers Mlp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 695.00 in Cohen Steers Mlp on September 12, 2024 and sell it today you would earn a total of 170.00 from holding Cohen Steers Mlp or generate 24.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aam Select Income vs. Cohen Steers Mlp
Performance |
| Timeline |
| Aam Select Income |
| Cohen Steers Mlp |
Aam Select and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aam Select and Cohen Steers
The main advantage of trading using opposite Aam Select and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aam Select 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.| Aam Select vs. Guggenheim Diversified Income | Aam Select vs. Federated Hermes Conservative | Aam Select vs. Global Diversified Income | Aam Select vs. Jpmorgan Diversified Fund |
| Cohen Steers vs. Aam Select Income | Cohen Steers vs. T Rowe Price | Cohen Steers vs. Iaadx | Cohen Steers vs. Ab Value Fund |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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