Correlation Between Cohen Steers and Fidelity Infrastructure
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Fidelity Infrastructure 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 Fidelity Infrastructure 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 Fidelity Infrastructure, you can compare the effects of market volatilities on Cohen Steers and Fidelity Infrastructure 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 Fidelity Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Fidelity Infrastructure.
Diversification Opportunities for Cohen Steers and Fidelity Infrastructure
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cohen and Fidelity is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Global and Fidelity Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Infrastructure 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 Fidelity Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Infrastructure has no effect on the direction of Cohen Steers i.e., Cohen Steers and Fidelity Infrastructure go up and down completely randomly.
Pair Corralation between Cohen Steers and Fidelity Infrastructure
Assuming the 90 days horizon Cohen Steers is expected to generate 1.34 times less return on investment than Fidelity Infrastructure. But when comparing it to its historical volatility, Cohen Steers Global is 1.02 times less risky than Fidelity Infrastructure. It trades about 0.05 of its potential returns per unit of risk. Fidelity Infrastructure is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,137 in Fidelity Infrastructure on August 30, 2024 and sell it today you would earn a total of 320.00 from holding Fidelity Infrastructure or generate 28.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Global vs. Fidelity Infrastructure
Performance |
| Timeline |
| Cohen Steers Global |
| Fidelity Infrastructure |
Cohen Steers and Fidelity Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Fidelity Infrastructure
The main advantage of trading using opposite Cohen Steers and Fidelity Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Fidelity Infrastructure 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 Fidelity Infrastructure will offset losses from the drop in Fidelity Infrastructure's long position.| Cohen Steers vs. Cohen Steers Global | Cohen Steers vs. Cohen Steers Real | Cohen Steers vs. Cohen Steers International | Cohen Steers vs. Nuveen Global Infrastructure |
| Fidelity Infrastructure vs. HUMANA INC | Fidelity Infrastructure vs. Aquagold International | Fidelity Infrastructure vs. Barloworld Ltd ADR | Fidelity Infrastructure vs. Morningstar Unconstrained Allocation |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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