Correlation Between Cohen Steers and Franklin Real
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Franklin Real 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 Franklin Real 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 Franklin Real Estate, you can compare the effects of market volatilities on Cohen Steers and Franklin Real 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 Franklin Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Franklin Real.
Diversification Opportunities for Cohen Steers and Franklin Real
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and Franklin is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Real and Franklin Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Real Estate 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 Franklin Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Real Estate has no effect on the direction of Cohen Steers i.e., Cohen Steers and Franklin Real go up and down completely randomly.
Pair Corralation between Cohen Steers and Franklin Real
Assuming the 90 days horizon Cohen Steers Real is expected to generate 0.96 times more return on investment than Franklin Real. However, Cohen Steers Real is 1.04 times less risky than Franklin Real. It trades about 0.09 of its potential returns per unit of risk. Franklin Real Estate is currently generating about 0.06 per unit of risk. If you would invest 1,260 in Cohen Steers Real on September 4, 2024 and sell it today you would earn a total of 278.00 from holding Cohen Steers Real or generate 22.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Cohen Steers Real vs. Franklin Real Estate
Performance |
| Timeline |
| Cohen Steers Real |
| Franklin Real Estate |
Cohen Steers and Franklin Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Franklin Real
The main advantage of trading using opposite Cohen Steers and Franklin Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Franklin Real 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 Franklin Real will offset losses from the drop in Franklin Real's long position.| Cohen Steers vs. Towpath Technology | Cohen Steers vs. Pgim Jennison Technology | Cohen Steers vs. Columbia Global Technology | Cohen Steers vs. Hennessy Technology Fund |
| Franklin Real vs. Realty Income | Franklin Real vs. Dynex Capital | Franklin Real vs. First Industrial Realty | Franklin Real vs. Healthcare Realty Trust |
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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