Correlation Between Cohen Steers and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Cohen Steers 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 Cohen Steers 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 Cohen Steers Global, you can compare the effects of market volatilities on Cohen Steers and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Cohen Steers.
Diversification Opportunities for Cohen Steers and Cohen Steers
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cohen and Cohen is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Realty and Cohen Steers Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Global 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Global has no effect on the direction of Cohen Steers i.e., Cohen Steers and Cohen Steers go up and down completely randomly.
Pair Corralation between Cohen Steers and Cohen Steers
Assuming the 90 days horizon Cohen Steers Realty is expected to generate 1.35 times more return on investment than Cohen Steers. However, Cohen Steers is 1.35 times more volatile than Cohen Steers Global. It trades about -0.05 of its potential returns per unit of risk. Cohen Steers Global is currently generating about -0.1 per unit of risk. If you would invest 6,919 in Cohen Steers Realty on November 1, 2024 and sell it today you would lose (238.00) from holding Cohen Steers Realty or give up 3.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Realty vs. Cohen Steers Global
Performance |
| Timeline |
| Cohen Steers Realty |
| Cohen Steers Global |
Cohen Steers and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Cohen Steers
The main advantage of trading using opposite Cohen Steers and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Cohen Steers vs. Cohen Steers Realty | Cohen Steers vs. Cohen Steers Realty | Cohen Steers vs. Real Estate Securities | Cohen Steers vs. Real Estate Securities |
| Cohen Steers vs. Intermediate Term Tax Free Bond | Cohen Steers vs. Dunham Porategovernment Bond | Cohen Steers vs. Oklahoma Municipal Fund | Cohen Steers vs. Pace Municipal Fixed |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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