Correlation Between Cohen Steers and Ep Emerging
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Ep Emerging 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 Ep Emerging 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 Ep Emerging Markets, you can compare the effects of market volatilities on Cohen Steers and Ep Emerging 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 Ep Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Ep Emerging.
Diversification Opportunities for Cohen Steers and Ep Emerging
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cohen and EPASX is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Realty and Ep Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ep Emerging Markets 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 Ep Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ep Emerging Markets has no effect on the direction of Cohen Steers i.e., Cohen Steers and Ep Emerging go up and down completely randomly.
Pair Corralation between Cohen Steers and Ep Emerging
Assuming the 90 days horizon Cohen Steers Realty is expected to generate 0.94 times more return on investment than Ep Emerging. However, Cohen Steers Realty is 1.07 times less risky than Ep Emerging. It trades about -0.07 of its potential returns per unit of risk. Ep Emerging Markets is currently generating about -0.07 per unit of risk. If you would invest 6,962 in Cohen Steers Realty on September 13, 2024 and sell it today you would lose (72.00) from holding Cohen Steers Realty or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Realty vs. Ep Emerging Markets
Performance |
| Timeline |
| Cohen Steers Realty |
| Ep Emerging Markets |
Cohen Steers and Ep Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Ep Emerging
The main advantage of trading using opposite Cohen Steers and Ep Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Ep Emerging 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 Ep Emerging will offset losses from the drop in Ep Emerging's long position.| Cohen Steers vs. Fpa Queens Road | Cohen Steers vs. Pace Smallmedium Value | Cohen Steers vs. Ab Small Cap | Cohen Steers vs. Boston Partners Small |
| Ep Emerging vs. Europac International Bond | Ep Emerging vs. Europac International Dividend | Ep Emerging vs. Ep Emerging Markets | Ep Emerging vs. Investment Managers Series |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |