Correlation Between Cohen Steers and Acrex
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Acrex 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 Acrex 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 Acrex, you can compare the effects of market volatilities on Cohen Steers and Acrex 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 Acrex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Acrex.
Diversification Opportunities for Cohen Steers and Acrex
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and Acrex is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Real and Acrex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acrex 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 Acrex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acrex has no effect on the direction of Cohen Steers i.e., Cohen Steers and Acrex go up and down completely randomly.
Pair Corralation between Cohen Steers and Acrex
Assuming the 90 days horizon Cohen Steers Real is expected to generate 0.63 times more return on investment than Acrex. However, Cohen Steers Real is 1.59 times less risky than Acrex. It trades about -0.45 of its potential returns per unit of risk. Acrex is currently generating about -0.29 per unit of risk. If you would invest 1,779 in Cohen Steers Real on September 28, 2024 and sell it today you would lose (167.00) from holding Cohen Steers Real or give up 9.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Cohen Steers Real vs. Acrex
Performance |
| Timeline |
| Cohen Steers Real |
| Acrex |
Cohen Steers and Acrex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Acrex
The main advantage of trading using opposite Cohen Steers and Acrex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Acrex 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 Acrex will offset losses from the drop in Acrex'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 |
| Acrex vs. Lord Abbett Small | Acrex vs. Fidelity Small Cap | Acrex vs. Applied Finance Explorer | Acrex vs. Heartland Value Plus |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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