Correlation Between Cohen Steers and Salient Select
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Salient Select 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 Salient Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Prfrd and Salient Select Income, you can compare the effects of market volatilities on Cohen Steers and Salient Select 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 Salient Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Salient Select.
Diversification Opportunities for Cohen Steers and Salient Select
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cohen and Salient is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Prfrd and Salient Select Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Select Income 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 Prfrd are associated (or correlated) with Salient Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Select Income has no effect on the direction of Cohen Steers i.e., Cohen Steers and Salient Select go up and down completely randomly.
Pair Corralation between Cohen Steers and Salient Select
Assuming the 90 days horizon Cohen Steers is expected to generate 2.28 times less return on investment than Salient Select. But when comparing it to its historical volatility, Cohen Steers Prfrd is 2.58 times less risky than Salient Select. It trades about 0.25 of its potential returns per unit of risk. Salient Select Income is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,758 in Salient Select Income on September 1, 2024 and sell it today you would earn a total of 213.00 from holding Salient Select Income or generate 12.12% 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 Prfrd vs. Salient Select Income
Performance |
| Timeline |
| Cohen Steers Prfrd |
| Salient Select Income |
Cohen Steers and Salient Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Salient Select
The main advantage of trading using opposite Cohen Steers and Salient Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Salient Select 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 Salient Select will offset losses from the drop in Salient Select's long position.| Cohen Steers vs. Aqr Managed Futures | Cohen Steers vs. Cref Inflation Linked Bond | Cohen Steers vs. The Hartford Inflation | Cohen Steers vs. American Funds Inflation |
| Salient Select vs. Salient Tactical Plus | Salient Select vs. Salient Tactical Plus | Salient Select vs. Salient Tactical Plus | Salient Select vs. Salient Tactical 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |