Correlation Between Cohen Steers and Columbia Real
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Columbia 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 Columbia 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 Columbia Real Estate, you can compare the effects of market volatilities on Cohen Steers and Columbia 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 Columbia Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Columbia Real.
Diversification Opportunities for Cohen Steers and Columbia Real
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cohen and Columbia is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Real and Columbia Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia 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 Columbia Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Real Estate has no effect on the direction of Cohen Steers i.e., Cohen Steers and Columbia Real go up and down completely randomly.
Pair Corralation between Cohen Steers and Columbia Real
Assuming the 90 days horizon Cohen Steers Real is expected to under-perform the Columbia Real. In addition to that, Cohen Steers is 1.06 times more volatile than Columbia Real Estate. It trades about -0.07 of its total potential returns per unit of risk. Columbia Real Estate is currently generating about 0.03 per unit of volatility. If you would invest 1,124 in Columbia Real Estate on August 26, 2024 and sell it today you would earn a total of 6.00 from holding Columbia Real Estate or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Real vs. Columbia Real Estate
Performance |
| Timeline |
| Cohen Steers Real |
| Columbia Real Estate |
Cohen Steers and Columbia Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Columbia Real
The main advantage of trading using opposite Cohen Steers and Columbia Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Columbia 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 Columbia Real will offset losses from the drop in Columbia Real's long position.| Cohen Steers vs. Commodityrealreturn Strategy Fund | Cohen Steers vs. Oakmark International Fund | Cohen Steers vs. Third Avenue Real | Cohen Steers vs. Large Cap Fund |
| Columbia Real vs. Vanguard Reit Index | Columbia Real vs. Vanguard Reit Index | Columbia Real vs. Dfa Real Estate | Columbia Real vs. Cohen Steers Real |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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