Correlation Between Cohen Steers and Nuveen Global
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Nuveen Global 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 Nuveen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Global and Nuveen Global Infrastructure, you can compare the effects of market volatilities on Cohen Steers and Nuveen Global 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 Nuveen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Nuveen Global.
Diversification Opportunities for Cohen Steers and Nuveen Global
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cohen and Nuveen is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Global and Nuveen Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Global Infras 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 Global are associated (or correlated) with Nuveen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Global Infras has no effect on the direction of Cohen Steers i.e., Cohen Steers and Nuveen Global go up and down completely randomly.
Pair Corralation between Cohen Steers and Nuveen Global
Assuming the 90 days horizon Cohen Steers Global is expected to generate 1.02 times more return on investment than Nuveen Global. However, Cohen Steers is 1.02 times more volatile than Nuveen Global Infrastructure. It trades about 0.13 of its potential returns per unit of risk. Nuveen Global Infrastructure is currently generating about 0.12 per unit of risk. If you would invest 2,038 in Cohen Steers Global on August 24, 2024 and sell it today you would earn a total of 482.00 from holding Cohen Steers Global or generate 23.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Global vs. Nuveen Global Infrastructure
Performance |
| Timeline |
| Cohen Steers Global |
| Nuveen Global Infras |
Cohen Steers and Nuveen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Nuveen Global
The main advantage of trading using opposite Cohen Steers and Nuveen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Nuveen Global 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 Nuveen Global will offset losses from the drop in Nuveen Global's long position.| Cohen Steers vs. Alpine Global Infrastructure | Cohen Steers vs. Frontier Mfg E | Cohen Steers vs. Invesco Disciplined Equity | Cohen Steers vs. Select Fund C |
| Nuveen Global vs. Alpine Global Infrastructure | Nuveen Global vs. Frontier Mfg E | Nuveen Global vs. Invesco Disciplined Equity | Nuveen Global vs. Select Fund C |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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