Correlation Between Cohen Steers and Lgm Risk
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Lgm Risk 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 Lgm Risk 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 Lgm Risk Managed, you can compare the effects of market volatilities on Cohen Steers and Lgm Risk 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 Lgm Risk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Lgm Risk.
Diversification Opportunities for Cohen Steers and Lgm Risk
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cohen and Lgm is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Real and Lgm Risk Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lgm Risk Managed 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 Lgm Risk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lgm Risk Managed has no effect on the direction of Cohen Steers i.e., Cohen Steers and Lgm Risk go up and down completely randomly.
Pair Corralation between Cohen Steers and Lgm Risk
Assuming the 90 days horizon Cohen Steers Real is expected to generate 3.51 times more return on investment than Lgm Risk. However, Cohen Steers is 3.51 times more volatile than Lgm Risk Managed. It trades about 0.05 of its potential returns per unit of risk. Lgm Risk Managed is currently generating about 0.14 per unit of risk. If you would invest 1,161 in Cohen Steers Real on November 29, 2024 and sell it today you would earn a total of 286.00 from holding Cohen Steers Real or generate 24.63% 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. Lgm Risk Managed
Performance |
| Timeline |
| Cohen Steers Real |
| Lgm Risk Managed |
Cohen Steers and Lgm Risk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Lgm Risk
The main advantage of trading using opposite Cohen Steers and Lgm Risk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Lgm Risk 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 Lgm Risk will offset losses from the drop in Lgm Risk's long position.| Cohen Steers vs. Fidelity Small Cap | Cohen Steers vs. Ab Discovery Value | Cohen Steers vs. T Rowe Price | Cohen Steers vs. T Rowe Price |
| Lgm Risk vs. Cref Inflation Linked Bond | Lgm Risk vs. Inflation Adjusted Bond Fund | Lgm Risk vs. Ab Bond Inflation | Lgm Risk vs. Ab Bond Inflation |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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