Correlation Between Emerging Markets and Cohen Steers

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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

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Emerging and Cohen is 0.0. 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

If you would invest  0.00  in Emerging Markets Portfolio on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Emerging Markets Portfolio or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.59%
ValuesDaily Returns

Emerging Markets Portfolio  vs.  Cohen Steers Realty

 Performance 
       Timeline  
Emerging Markets Por 

Risk-Adjusted Performance

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Weak
 
Strong
Insignificant
Over the last 90 days Emerging Markets Portfolio has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong primary indicators, Emerging Markets is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Cohen Steers Realty 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Cohen Steers Realty has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Cohen Steers is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.
The idea behind Emerging Markets Portfolio and Cohen Steers Realty pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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