Correlation Between Cohen Steers and Great-west Real
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Great-west Real 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 Great-west Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Prefrd and Great West Real Estate, you can compare the effects of market volatilities on Cohen Steers and Great-west Real 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 Great-west Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Great-west Real.
Diversification Opportunities for Cohen Steers and Great-west Real
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cohen and Great-west is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Prefrd and Great West Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Real 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 Prefrd are associated (or correlated) with Great-west Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Real has no effect on the direction of Cohen Steers i.e., Cohen Steers and Great-west Real go up and down completely randomly.
Pair Corralation between Cohen Steers and Great-west Real
Assuming the 90 days horizon Cohen Steers is expected to generate 64.0 times less return on investment than Great-west Real. But when comparing it to its historical volatility, Cohen Steers Prefrd is 6.34 times less risky than Great-west Real. It trades about 0.03 of its potential returns per unit of risk. Great West Real Estate is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,320 in Great West Real Estate on September 1, 2024 and sell it today you would earn a total of 68.00 from holding Great West Real Estate or generate 5.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cohen Steers Prefrd vs. Great West Real Estate
Performance |
| Timeline |
| Cohen Steers Prefrd |
| Great West Real |
Cohen Steers and Great-west Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Great-west Real
The main advantage of trading using opposite Cohen Steers and Great-west Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Great-west Real 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 Great-west Real will offset losses from the drop in Great-west Real's long position.| Cohen Steers vs. Great West Real Estate | Cohen Steers vs. Dunham Real Estate | Cohen Steers vs. Amg Managers Centersquare | Cohen Steers vs. Deutsche Real Estate |
| Great-west Real vs. Harbor Vertible Securities | Great-west Real vs. Gabelli Convertible And | Great-west Real vs. Fidelity Sai Convertible | Great-west Real vs. Columbia Vertible Securities |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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