Correlation Between Cohen Steers and Touchstone Premium
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Touchstone Premium 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 Touchstone Premium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Realty and Touchstone Premium Yield, you can compare the effects of market volatilities on Cohen Steers and Touchstone Premium 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 Touchstone Premium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Touchstone Premium.
Diversification Opportunities for Cohen Steers and Touchstone Premium
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cohen and Touchstone is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Realty and Touchstone Premium Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Premium Yield 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 Realty are associated (or correlated) with Touchstone Premium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Premium Yield has no effect on the direction of Cohen Steers i.e., Cohen Steers and Touchstone Premium go up and down completely randomly.
Pair Corralation between Cohen Steers and Touchstone Premium
Assuming the 90 days horizon Cohen Steers Realty is expected to generate 0.94 times more return on investment than Touchstone Premium. However, Cohen Steers Realty is 1.07 times less risky than Touchstone Premium. It trades about 0.06 of its potential returns per unit of risk. Touchstone Premium Yield is currently generating about 0.05 per unit of risk. If you would invest 7,008 in Cohen Steers Realty on September 2, 2024 and sell it today you would earn a total of 218.00 from holding Cohen Steers Realty or generate 3.11% 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 Realty vs. Touchstone Premium Yield
Performance |
| Timeline |
| Cohen Steers Realty |
| Touchstone Premium Yield |
Cohen Steers and Touchstone Premium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Touchstone Premium
The main advantage of trading using opposite Cohen Steers and Touchstone Premium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Touchstone Premium 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 Touchstone Premium will offset losses from the drop in Touchstone Premium'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 |
| Touchstone Premium vs. Ashmore Emerging Markets | Touchstone Premium vs. Eagle Mlp Strategy | Touchstone Premium vs. Ep Emerging Markets | Touchstone Premium vs. Black Oak Emerging |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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