Correlation Between Cohen Steers and Pimco Capital
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Pimco Capital 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 Capital 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 Pimco Capital Sec, you can compare the effects of market volatilities on Cohen Steers and Pimco Capital 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 Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Pimco Capital.
Diversification Opportunities for Cohen Steers and Pimco Capital
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cohen and Pimco is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Prfrd and Pimco Capital Sec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Capital Sec 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 Pimco Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Capital Sec has no effect on the direction of Cohen Steers i.e., Cohen Steers and Pimco Capital go up and down completely randomly.
Pair Corralation between Cohen Steers and Pimco Capital
Assuming the 90 days horizon Cohen Steers Prfrd is expected to generate 1.29 times more return on investment than Pimco Capital. However, Cohen Steers is 1.29 times more volatile than Pimco Capital Sec. It trades about 0.12 of its potential returns per unit of risk. Pimco Capital Sec is currently generating about 0.03 per unit of risk. If you would invest 1,229 in Cohen Steers Prfrd on October 25, 2024 and sell it today you would earn a total of 7.00 from holding Cohen Steers Prfrd or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
Cohen Steers Prfrd vs. Pimco Capital Sec
Performance |
| Timeline |
| Cohen Steers Prfrd |
| Pimco Capital Sec |
Cohen Steers and Pimco Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Pimco Capital
The main advantage of trading using opposite Cohen Steers and Pimco Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Pimco Capital 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 Capital will offset losses from the drop in Pimco Capital's long position.| Cohen Steers vs. T Rowe Price | Cohen Steers vs. Locorr Dynamic Equity | Cohen Steers vs. Dws Equity Sector | Cohen Steers vs. Aqr Long Short Equity |
| Pimco Capital vs. Cohen Steers Prfrd | Pimco Capital vs. Cohen Steers Preferd | Pimco Capital vs. Cohen Steers Prefrd | Pimco Capital vs. Cohen Steers Preferred |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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