Correlation Between Cohen and Acrex
Can any of the company-specific risk be diversified away by investing in both Cohen and Acrex 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 and Acrex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen And Steers and Acrex, you can compare the effects of market volatilities on Cohen and Acrex 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 with a short position of Acrex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen and Acrex.
Diversification Opportunities for Cohen and Acrex
Poor diversification
The 3 months correlation between Cohen and Acrex is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Cohen And Steers and Acrex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acrex and Cohen 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 And Steers are associated (or correlated) with Acrex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acrex has no effect on the direction of Cohen i.e., Cohen and Acrex go up and down completely randomly.
Pair Corralation between Cohen and Acrex
Assuming the 90 days horizon Cohen And Steers is expected to generate 1.07 times more return on investment than Acrex. However, Cohen is 1.07 times more volatile than Acrex. It trades about 0.03 of its potential returns per unit of risk. Acrex is currently generating about -0.05 per unit of risk. If you would invest 4,117 in Cohen And Steers on September 28, 2024 and sell it today you would earn a total of 657.00 from holding Cohen And Steers or generate 15.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 38.31% |
| Values | Daily Returns |
Cohen And Steers vs. Acrex
Performance |
| Timeline |
| Cohen And Steers |
| Acrex |
Cohen and Acrex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen and Acrex
The main advantage of trading using opposite Cohen and Acrex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen position performs unexpectedly, Acrex 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 Acrex will offset losses from the drop in Acrex's long position.| Cohen vs. Commodityrealreturn Strategy Fund | Cohen vs. Oakmark International Fund | Cohen vs. Third Avenue Real | Cohen vs. Large Cap Fund |
| Acrex vs. Lord Abbett Small | Acrex vs. Fidelity Small Cap | Acrex vs. Applied Finance Explorer | Acrex vs. Heartland Value Plus |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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