Correlation Between Cohen Steers and Kinetics Market
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Kinetics Market 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 Kinetics Market 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 Kinetics Market Opportunities, you can compare the effects of market volatilities on Cohen Steers and Kinetics Market 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 Kinetics Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Kinetics Market.
Diversification Opportunities for Cohen Steers and Kinetics Market
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cohen and Kinetics is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Realty and Kinetics Market Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Market Oppo 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 Kinetics Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Market Oppo has no effect on the direction of Cohen Steers i.e., Cohen Steers and Kinetics Market go up and down completely randomly.
Pair Corralation between Cohen Steers and Kinetics Market
Assuming the 90 days horizon Cohen Steers Realty is expected to generate 0.2 times more return on investment than Kinetics Market. However, Cohen Steers Realty is 4.92 times less risky than Kinetics Market. It trades about -0.07 of its potential returns per unit of risk. Kinetics Market Opportunities is currently generating about -0.06 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Realty vs. Kinetics Market Opportunities
Performance |
| Timeline |
| Cohen Steers Realty |
| Kinetics Market Oppo |
Cohen Steers and Kinetics Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Kinetics Market
The main advantage of trading using opposite Cohen Steers and Kinetics Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Kinetics Market 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 Kinetics Market will offset losses from the drop in Kinetics Market'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 |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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