Correlation Between Cohen Steers and James Alpha
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and James Alpha 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 James Alpha 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 James Alpha Global, you can compare the effects of market volatilities on Cohen Steers and James Alpha 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 James Alpha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and James Alpha.
Diversification Opportunities for Cohen Steers and James Alpha
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and James is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Realty and James Alpha Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on James Alpha 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 James Alpha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of James Alpha Global has no effect on the direction of Cohen Steers i.e., Cohen Steers and James Alpha go up and down completely randomly.
Pair Corralation between Cohen Steers and James Alpha
Assuming the 90 days horizon Cohen Steers Realty is expected to generate 1.19 times more return on investment than James Alpha. However, Cohen Steers is 1.19 times more volatile than James Alpha Global. It trades about 0.09 of its potential returns per unit of risk. James Alpha Global is currently generating about 0.06 per unit of risk. If you would invest 5,843 in Cohen Steers Realty on August 26, 2024 and sell it today you would earn a total of 1,274 from holding Cohen Steers Realty or generate 21.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Realty vs. James Alpha Global
Performance |
| Timeline |
| Cohen Steers Realty |
| James Alpha Global |
Cohen Steers and James Alpha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and James Alpha
The main advantage of trading using opposite Cohen Steers and James Alpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, James Alpha 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 James Alpha will offset losses from the drop in James Alpha's long position.| Cohen Steers vs. Commodityrealreturn Strategy Fund | Cohen Steers vs. Oakmark International Fund | Cohen Steers vs. Third Avenue Real | Cohen Steers vs. Large Cap Fund |
| James Alpha vs. James Alpha Global | James Alpha vs. James Alpha Global | James Alpha vs. Virtus Global Real | James Alpha vs. Virtus Global Real |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |