Correlation Between Cohen Steers and Transamerica Emerging
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Transamerica 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 Transamerica 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 Transamerica Emerging Markets, you can compare the effects of market volatilities on Cohen Steers and Transamerica 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 Transamerica Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Transamerica Emerging.
Diversification Opportunities for Cohen Steers and Transamerica Emerging
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cohen and Transamerica is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Realty and Transamerica Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transamerica Emerging 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 Transamerica Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transamerica Emerging has no effect on the direction of Cohen Steers i.e., Cohen Steers and Transamerica Emerging go up and down completely randomly.
Pair Corralation between Cohen Steers and Transamerica Emerging
Assuming the 90 days horizon Cohen Steers Realty is expected to under-perform the Transamerica Emerging. In addition to that, Cohen Steers is 1.04 times more volatile than Transamerica Emerging Markets. It trades about -0.13 of its total potential returns per unit of risk. Transamerica Emerging Markets is currently generating about 0.01 per unit of volatility. If you would invest 818.00 in Transamerica Emerging Markets on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Transamerica Emerging Markets or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Realty vs. Transamerica Emerging Markets
Performance |
| Timeline |
| Cohen Steers Realty |
| Transamerica Emerging |
Cohen Steers and Transamerica Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Transamerica Emerging
The main advantage of trading using opposite Cohen Steers and Transamerica Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Transamerica 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 Transamerica Emerging will offset losses from the drop in Transamerica Emerging's long position.| Cohen Steers vs. Ep Emerging Markets | Cohen Steers vs. Barings Emerging Markets | Cohen Steers vs. Kinetics Market Opportunities | Cohen Steers vs. Transamerica Emerging Markets |
| Transamerica Emerging vs. American Funds New | Transamerica Emerging vs. SCOR PK | Transamerica Emerging vs. Morningstar Unconstrained Allocation | Transamerica Emerging vs. Via Renewables |
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 Stocks Directory module to find actively traded stocks across global markets.
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