Correlation Between Cohen Steers and Short Oil
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Short Oil 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 Short Oil 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 Short Oil Gas, you can compare the effects of market volatilities on Cohen Steers and Short Oil 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 Short Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Short Oil.
Diversification Opportunities for Cohen Steers and Short Oil
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cohen and Short is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Preferred and Short Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Oil Gas 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 Short Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Oil Gas has no effect on the direction of Cohen Steers i.e., Cohen Steers and Short Oil go up and down completely randomly.
Pair Corralation between Cohen Steers and Short Oil
Assuming the 90 days horizon Cohen Steers Preferred is expected to generate 0.13 times more return on investment than Short Oil. However, Cohen Steers Preferred is 7.95 times less risky than Short Oil. It trades about -0.11 of its potential returns per unit of risk. Short Oil Gas is currently generating about -0.32 per unit of risk. If you would invest 1,244 in Cohen Steers Preferred on August 25, 2024 and sell it today you would lose (4.00) from holding Cohen Steers Preferred or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Preferred vs. Short Oil Gas
Performance |
| Timeline |
| Cohen Steers Preferred |
| Short Oil Gas |
Cohen Steers and Short Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Short Oil
The main advantage of trading using opposite Cohen Steers and Short Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Short Oil 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 Short Oil will offset losses from the drop in Short Oil's long position.| Cohen Steers vs. Short Oil Gas | Cohen Steers vs. Franklin Natural Resources | Cohen Steers vs. Oil Gas Ultrasector | Cohen Steers vs. Calvert Global Energy |
| Short Oil vs. Victory Rs Partners | Short Oil vs. Vanguard Small Cap Value | Short Oil vs. Ab Discovery Value | Short Oil vs. Queens Road Small |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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