Correlation Between Cohen Steers and Reaves Select
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Reaves Select 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 Reaves Select 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 Reaves Select Research, you can compare the effects of market volatilities on Cohen Steers and Reaves Select 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 Reaves Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Reaves Select.
Diversification Opportunities for Cohen Steers and Reaves Select
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cohen and Reaves is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Global and Reaves Select Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reaves Select Research 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 Reaves Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reaves Select Research has no effect on the direction of Cohen Steers i.e., Cohen Steers and Reaves Select go up and down completely randomly.
Pair Corralation between Cohen Steers and Reaves Select
Assuming the 90 days horizon Cohen Steers is expected to generate 85.65 times less return on investment than Reaves Select. But when comparing it to its historical volatility, Cohen Steers Global is 1.47 times less risky than Reaves Select. It trades about 0.0 of its potential returns per unit of risk. Reaves Select Research is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,048 in Reaves Select Research on August 25, 2024 and sell it today you would earn a total of 41.00 from holding Reaves Select Research or generate 3.91% 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. Reaves Select Research
Performance |
| Timeline |
| Cohen Steers Global |
| Reaves Select Research |
Cohen Steers and Reaves Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Reaves Select
The main advantage of trading using opposite Cohen Steers and Reaves Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Reaves Select 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 Reaves Select will offset losses from the drop in Reaves Select'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 |
| Reaves Select vs. Cohen Steers Global | Reaves Select vs. Virtus Global Infrastructure | Reaves Select vs. Brookfield Global Listed | Reaves Select vs. Alpine Global Infrastructure |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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