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 Preferred 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
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cohen and Pimco is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Preferred 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 Preferred 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 is expected to generate 1.08 times less return on investment than Pimco Preferred. But when comparing it to its historical volatility, Cohen Steers Preferred is 1.01 times less risky than Pimco Preferred. It trades about 0.26 of its potential returns per unit of risk. Pimco Preferred And is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 824.00 in Pimco Preferred And on September 4, 2024 and sell it today you would earn a total of 115.00 from holding Pimco Preferred And or generate 13.96% 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. Pimco Preferred And
Performance |
| Timeline |
| Cohen Steers Preferred |
| 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 Mlp | Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Mlp |
| Pimco Preferred vs. Pimco Rae Worldwide | Pimco Preferred vs. Pimco Rae Worldwide | Pimco Preferred vs. Pimco Rae Worldwide | Pimco Preferred vs. Pimco Rae Worldwide |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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