Correlation Between Cohen Steers and West Loop
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and West Loop 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 West Loop 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 West Loop Realty, you can compare the effects of market volatilities on Cohen Steers and West Loop 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 West Loop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and West Loop.
Diversification Opportunities for Cohen Steers and West Loop
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cohen and West is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Real and West Loop Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on West Loop Realty 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 West Loop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of West Loop Realty has no effect on the direction of Cohen Steers i.e., Cohen Steers and West Loop go up and down completely randomly.
Pair Corralation between Cohen Steers and West Loop
Assuming the 90 days horizon Cohen Steers Real is expected to generate 0.99 times more return on investment than West Loop. However, Cohen Steers Real is 1.01 times less risky than West Loop. It trades about 0.07 of its potential returns per unit of risk. West Loop Realty is currently generating about 0.06 per unit of risk. If you would invest 1,207 in Cohen Steers Real on August 31, 2024 and sell it today you would earn a total of 339.00 from holding Cohen Steers Real or generate 28.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Real vs. West Loop Realty
Performance |
| Timeline |
| Cohen Steers Real |
| West Loop Realty |
Cohen Steers and West Loop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and West Loop
The main advantage of trading using opposite Cohen Steers and West Loop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, West Loop 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 West Loop will offset losses from the drop in West Loop's long position.| Cohen Steers vs. Federated Institutional High | Cohen Steers vs. T Rowe Price | Cohen Steers vs. Ab High Income | Cohen Steers vs. Lgm Risk Managed |
| West Loop vs. Qs Large Cap | West Loop vs. Western Asset Municipal | West Loop vs. Leggmason Partners Institutional | West Loop vs. Bbh Partner Fund |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |