Correlation Between Cohen Steers and Stocksplus Total
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Stocksplus Total 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 Stocksplus Total 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 Stocksplus Total Return, you can compare the effects of market volatilities on Cohen Steers and Stocksplus Total 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 Stocksplus Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Stocksplus Total.
Diversification Opportunities for Cohen Steers and Stocksplus Total
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and Stocksplus is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Prfrd and Stocksplus Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stocksplus Total Return 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 Stocksplus Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stocksplus Total Return has no effect on the direction of Cohen Steers i.e., Cohen Steers and Stocksplus Total go up and down completely randomly.
Pair Corralation between Cohen Steers and Stocksplus Total
Assuming the 90 days horizon Cohen Steers is expected to generate 2.8 times less return on investment than Stocksplus Total. But when comparing it to its historical volatility, Cohen Steers Prfrd is 2.36 times less risky than Stocksplus Total. It trades about 0.08 of its potential returns per unit of risk. Stocksplus Total Return is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 891.00 in Stocksplus Total Return on August 25, 2024 and sell it today you would earn a total of 458.00 from holding Stocksplus Total Return or generate 51.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Prfrd vs. Stocksplus Total Return
Performance |
| Timeline |
| Cohen Steers Prfrd |
| Stocksplus Total Return |
Cohen Steers and Stocksplus Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Stocksplus Total
The main advantage of trading using opposite Cohen Steers and Stocksplus Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Stocksplus Total 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 Stocksplus Total will offset losses from the drop in Stocksplus Total's long position.| Cohen Steers vs. T Rowe Price | Cohen Steers vs. Smallcap Growth Fund | Cohen Steers vs. Pioneer Fundamental Growth | Cohen Steers vs. Rational Defensive Growth |
| Stocksplus Total vs. Pimco Small Cap | Stocksplus Total vs. Pimco International Stocksplus | Stocksplus Total vs. Fundamental Indexplus Tr | Stocksplus Total vs. Stocksplus Fund Institutional |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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