Correlation Between Cohen Steers and Ab Impact
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Ab Impact 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 Ab Impact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Real and Ab Impact Municipal, you can compare the effects of market volatilities on Cohen Steers and Ab Impact 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 Ab Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Ab Impact.
Diversification Opportunities for Cohen Steers and Ab Impact
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cohen and ABIMX is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Real and Ab Impact Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Impact Municipal 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 Real are associated (or correlated) with Ab Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Impact Municipal has no effect on the direction of Cohen Steers i.e., Cohen Steers and Ab Impact go up and down completely randomly.
Pair Corralation between Cohen Steers and Ab Impact
Assuming the 90 days horizon Cohen Steers Real is expected to under-perform the Ab Impact. In addition to that, Cohen Steers is 3.62 times more volatile than Ab Impact Municipal. It trades about -0.11 of its total potential returns per unit of risk. Ab Impact Municipal is currently generating about 0.17 per unit of volatility. If you would invest 986.00 in Ab Impact Municipal on September 14, 2024 and sell it today you would earn a total of 7.00 from holding Ab Impact Municipal or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Real vs. Ab Impact Municipal
Performance |
| Timeline |
| Cohen Steers Real |
| Ab Impact Municipal |
Cohen Steers and Ab Impact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Ab Impact
The main advantage of trading using opposite Cohen Steers and Ab Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Ab Impact 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 Ab Impact will offset losses from the drop in Ab Impact's long position.| Cohen Steers vs. Ab Impact Municipal | Cohen Steers vs. Bbh Intermediate Municipal | Cohen Steers vs. Counterpoint Tactical Municipal | Cohen Steers vs. Nuveen Minnesota Municipal |
| Ab Impact vs. Large Cap Growth Profund | Ab Impact vs. Pace Large Value | Ab Impact vs. Virtus Nfj Large Cap | Ab Impact vs. Aqr Large Cap |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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