Correlation Between Cohen Steers and Investec Emerging
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Investec 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 Investec 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 Investec Emerging Markets, you can compare the effects of market volatilities on Cohen Steers and Investec 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 Investec Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Investec Emerging.
Diversification Opportunities for Cohen Steers and Investec Emerging
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cohen and Investec is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Realty and Investec Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investec 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 Investec Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investec Emerging Markets has no effect on the direction of Cohen Steers i.e., Cohen Steers and Investec Emerging go up and down completely randomly.
Pair Corralation between Cohen Steers and Investec Emerging
Assuming the 90 days horizon Cohen Steers Realty is expected to generate 0.86 times more return on investment than Investec Emerging. However, Cohen Steers Realty is 1.16 times less risky than Investec Emerging. It trades about -0.13 of its potential returns per unit of risk. Investec Emerging Markets is currently generating about -0.15 per unit of risk. If you would invest 7,055 in Cohen Steers Realty on September 12, 2024 and sell it today you would lose (143.00) from holding Cohen Steers Realty or give up 2.03% 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. Investec Emerging Markets
Performance |
| Timeline |
| Cohen Steers Realty |
| Investec Emerging Markets |
Cohen Steers and Investec Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Investec Emerging
The main advantage of trading using opposite Cohen Steers and Investec Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Investec 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 Investec Emerging will offset losses from the drop in Investec 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 |
| Investec Emerging vs. American Funds New | Investec Emerging vs. SCOR PK | Investec Emerging vs. Morningstar Unconstrained Allocation | Investec 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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