Correlation Between Emerging Markets and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Emerging Markets and Cohen Steers 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 Emerging Markets and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerging Markets Portfolio and Cohen Steers Realty, you can compare the effects of market volatilities on Emerging Markets and Cohen Steers 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 Emerging Markets with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerging Markets and Cohen Steers.
Diversification Opportunities for Emerging Markets and Cohen Steers
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Emerging and Cohen is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Markets Portfolio and Cohen Steers Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Realty and Emerging Markets 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 Emerging Markets Portfolio are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Realty has no effect on the direction of Emerging Markets i.e., Emerging Markets and Cohen Steers go up and down completely randomly.
Pair Corralation between Emerging Markets and Cohen Steers
Assuming the 90 days horizon Emerging Markets Portfolio is expected to generate 0.89 times more return on investment than Cohen Steers. However, Emerging Markets Portfolio is 1.13 times less risky than Cohen Steers. It trades about -0.05 of its potential returns per unit of risk. Cohen Steers Realty is currently generating about -0.13 per unit of risk. If you would invest 2,999 in Emerging Markets Portfolio on September 12, 2024 and sell it today you would lose (22.00) from holding Emerging Markets Portfolio or give up 0.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emerging Markets Portfolio vs. Cohen Steers Realty
Performance |
| Timeline |
| Emerging Markets Por |
| Cohen Steers Realty |
Emerging Markets and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerging Markets and Cohen Steers
The main advantage of trading using opposite Emerging Markets and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Markets position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Emerging Markets vs. International Small Pany | Emerging Markets vs. Dfa International Small | Emerging Markets vs. Dfa International Value | Emerging Markets vs. Us Large Cap |
| Cohen Steers vs. Guggenheim Risk Managed | Cohen Steers vs. HUMANA INC | Cohen Steers vs. Barloworld Ltd ADR | Cohen Steers 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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