Correlation Between Cohen Steers and Capital Securities
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Capital Securities 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 Capital Securities 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 Capital Securities Fund, you can compare the effects of market volatilities on Cohen Steers and Capital Securities 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 Capital Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Capital Securities.
Diversification Opportunities for Cohen Steers and Capital Securities
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cohen and Capital is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Preferred and Capital Securities Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Securities 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 Capital Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Securities has no effect on the direction of Cohen Steers i.e., Cohen Steers and Capital Securities go up and down completely randomly.
Pair Corralation between Cohen Steers and Capital Securities
Assuming the 90 days horizon Cohen Steers Preferred is expected to generate 0.98 times more return on investment than Capital Securities. However, Cohen Steers Preferred is 1.02 times less risky than Capital Securities. It trades about 0.05 of its potential returns per unit of risk. Capital Securities Fund is currently generating about -0.03 per unit of risk. If you would invest 1,239 in Cohen Steers Preferred on August 31, 2024 and sell it today you would earn a total of 2.00 from holding Cohen Steers Preferred or generate 0.16% 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 Preferred vs. Capital Securities Fund
Performance |
| Timeline |
| Cohen Steers Preferred |
| Capital Securities |
Cohen Steers and Capital Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Capital Securities
The main advantage of trading using opposite Cohen Steers and Capital Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Capital Securities 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 Capital Securities will offset losses from the drop in Capital Securities' long position.| Cohen Steers vs. Allianzgi Technology Fund | Cohen Steers vs. Fidelity Advisor Technology | Cohen Steers vs. Goldman Sachs Technology | Cohen Steers vs. Technology Ultrasector Profund |
| Capital Securities vs. Amg River Road | Capital Securities vs. Victory Rs Partners | Capital Securities vs. Pace Smallmedium Value | Capital Securities vs. Fpa Queens Road |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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