Correlation Between Cohen Steers and Deutsche Enhanced
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Deutsche Enhanced 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 Deutsche Enhanced 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 Deutsche Enhanced Modity, you can compare the effects of market volatilities on Cohen Steers and Deutsche Enhanced 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 Deutsche Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Deutsche Enhanced.
Diversification Opportunities for Cohen Steers and Deutsche Enhanced
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cohen and Deutsche is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Real and Deutsche Enhanced Modity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Enhanced Modity 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 Deutsche Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Enhanced Modity has no effect on the direction of Cohen Steers i.e., Cohen Steers and Deutsche Enhanced go up and down completely randomly.
Pair Corralation between Cohen Steers and Deutsche Enhanced
Assuming the 90 days horizon Cohen Steers Real is expected to generate 1.48 times more return on investment than Deutsche Enhanced. However, Cohen Steers is 1.48 times more volatile than Deutsche Enhanced Modity. It trades about 0.03 of its potential returns per unit of risk. Deutsche Enhanced Modity is currently generating about -0.01 per unit of risk. If you would invest 1,900 in Cohen Steers Real on August 29, 2024 and sell it today you would earn a total of 13.00 from holding Cohen Steers Real or generate 0.68% 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. Deutsche Enhanced Modity
Performance |
| Timeline |
| Cohen Steers Real |
| Deutsche Enhanced Modity |
Cohen Steers and Deutsche Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Deutsche Enhanced
The main advantage of trading using opposite Cohen Steers and Deutsche Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Deutsche Enhanced 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 Deutsche Enhanced will offset losses from the drop in Deutsche Enhanced's long position.| Cohen Steers vs. Franklin Natural Resources | Cohen Steers vs. HUMANA INC | Cohen Steers vs. Aquagold International | Cohen Steers vs. Barloworld Ltd ADR |
| Deutsche Enhanced vs. New World Fund | Deutsche Enhanced vs. Cohen Steers Real | Deutsche Enhanced vs. Europacific Growth Fund | Deutsche Enhanced vs. Deutsche Global 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |