Correlation Between Columbia Real and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Columbia Real and Cohen Steers 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 Columbia Real and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Real Estate and Cohen Steers Real, you can compare the effects of market volatilities on Columbia Real and Cohen Steers 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 Columbia Real with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Real and Cohen Steers.
Diversification Opportunities for Columbia Real and Cohen Steers
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Columbia and Cohen is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Real Estate and Cohen Steers Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Real and Columbia Real 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 Columbia Real Estate are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Real has no effect on the direction of Columbia Real i.e., Columbia Real and Cohen Steers go up and down completely randomly.
Pair Corralation between Columbia Real and Cohen Steers
Assuming the 90 days horizon Columbia Real Estate is expected to generate 1.03 times more return on investment than Cohen Steers. However, Columbia Real is 1.03 times more volatile than Cohen Steers Real. It trades about 0.05 of its potential returns per unit of risk. Cohen Steers Real is currently generating about 0.04 per unit of risk. If you would invest 917.00 in Columbia Real Estate on October 30, 2024 and sell it today you would earn a total of 105.00 from holding Columbia Real Estate or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Real Estate vs. Cohen Steers Real
Performance |
| Timeline |
| Columbia Real Estate |
| Cohen Steers Real |
Columbia Real and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Real and Cohen Steers
The main advantage of trading using opposite Columbia Real and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Real position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Columbia Real vs. James Balanced Golden | Columbia Real vs. Great West Goldman Sachs | Columbia Real vs. Wells Fargo Advantage | Columbia Real vs. Fidelity Advisor Gold |
| Cohen Steers vs. Rbc Global Opportunities | Cohen Steers vs. Legg Mason Global | Cohen Steers vs. Qs Global Equity | Cohen Steers vs. Rbc Global Equity |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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