Correlation Between Cohen Steers and Jpmorgan Mortgage-backed
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Jpmorgan Mortgage-backed 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 Jpmorgan Mortgage-backed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Preferred and Jpmorgan Mortgage Backed Securities, you can compare the effects of market volatilities on Cohen Steers and Jpmorgan Mortgage-backed 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 Jpmorgan Mortgage-backed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Jpmorgan Mortgage-backed.
Diversification Opportunities for Cohen Steers and Jpmorgan Mortgage-backed
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cohen and Jpmorgan is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Preferred and Jpmorgan Mortgage Backed Secur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Mortgage-backed 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 Preferred are associated (or correlated) with Jpmorgan Mortgage-backed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Mortgage-backed has no effect on the direction of Cohen Steers i.e., Cohen Steers and Jpmorgan Mortgage-backed go up and down completely randomly.
Pair Corralation between Cohen Steers and Jpmorgan Mortgage-backed
Assuming the 90 days horizon Cohen Steers Preferred is expected to generate 0.46 times more return on investment than Jpmorgan Mortgage-backed. However, Cohen Steers Preferred is 2.19 times less risky than Jpmorgan Mortgage-backed. It trades about -0.11 of its potential returns per unit of risk. Jpmorgan Mortgage Backed Securities is currently generating about -0.07 per unit of risk. If you would invest 1,243 in Cohen Steers Preferred on August 25, 2024 and sell it today you would lose (4.00) from holding Cohen Steers Preferred or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Preferred vs. Jpmorgan Mortgage Backed Secur
Performance |
| Timeline |
| Cohen Steers Preferred |
| Jpmorgan Mortgage-backed |
Cohen Steers and Jpmorgan Mortgage-backed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Jpmorgan Mortgage-backed
The main advantage of trading using opposite Cohen Steers and Jpmorgan Mortgage-backed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Jpmorgan Mortgage-backed 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 Jpmorgan Mortgage-backed will offset losses from the drop in Jpmorgan Mortgage-backed's long position.| Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Mlp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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