Correlation Between Cohen Steers and Pimco Preferred
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Pimco Preferred 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 Pimco Preferred into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Preferd and Pimco Preferred And, you can compare the effects of market volatilities on Cohen Steers and Pimco Preferred 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 Pimco Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Pimco Preferred.
Diversification Opportunities for Cohen Steers and Pimco Preferred
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cohen and Pimco is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Preferd and Pimco Preferred And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Preferred And 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 Preferd are associated (or correlated) with Pimco Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Preferred And has no effect on the direction of Cohen Steers i.e., Cohen Steers and Pimco Preferred go up and down completely randomly.
Pair Corralation between Cohen Steers and Pimco Preferred
Assuming the 90 days horizon Cohen Steers Preferd is expected to under-perform the Pimco Preferred. In addition to that, Cohen Steers is 1.04 times more volatile than Pimco Preferred And. It trades about -0.05 of its total potential returns per unit of risk. Pimco Preferred And is currently generating about 0.11 per unit of volatility. If you would invest 929.00 in Pimco Preferred And on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Pimco Preferred And or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Preferd vs. Pimco Preferred And
Performance |
| Timeline |
| Cohen Steers Preferd |
| Pimco Preferred And |
Cohen Steers and Pimco Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Pimco Preferred
The main advantage of trading using opposite Cohen Steers and Pimco Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Pimco Preferred 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 Pimco Preferred will offset losses from the drop in Pimco Preferred's long position.| Cohen Steers vs. Cohen Steers Prfrd | Cohen Steers vs. Cohen Steers Preferred | Cohen Steers vs. Preferred Securities Fund | Cohen Steers vs. Aquagold International |
| Pimco Preferred vs. Amg River Road | Pimco Preferred vs. Ultramid Cap Profund Ultramid Cap | Pimco Preferred vs. Victory Rs Partners | Pimco Preferred vs. Heartland Value Plus |
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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