Correlation Between Flaherty and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Flaherty 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 Flaherty and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flaherty and Crumrine and Cohen Steers Qualityome, you can compare the effects of market volatilities on Flaherty 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 Flaherty with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flaherty and Cohen Steers.
Diversification Opportunities for Flaherty and Cohen Steers
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Flaherty and Cohen is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Flaherty and Crumrine and Cohen Steers Qualityome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Qualityome and Flaherty 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 Flaherty and Crumrine 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 Qualityome has no effect on the direction of Flaherty i.e., Flaherty and Cohen Steers go up and down completely randomly.
Pair Corralation between Flaherty and Cohen Steers
Considering the 90-day investment horizon Flaherty and Crumrine is expected to generate 0.5 times more return on investment than Cohen Steers. However, Flaherty and Crumrine is 2.0 times less risky than Cohen Steers. It trades about 0.12 of its potential returns per unit of risk. Cohen Steers Qualityome is currently generating about 0.05 per unit of risk. If you would invest 1,686 in Flaherty and Crumrine on November 9, 2024 and sell it today you would earn a total of 371.00 from holding Flaherty and Crumrine or generate 22.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flaherty and Crumrine vs. Cohen Steers Qualityome
Performance |
| Timeline |
| Flaherty and Crumrine |
| Cohen Steers Qualityome |
Flaherty and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flaherty and Cohen Steers
The main advantage of trading using opposite Flaherty and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flaherty 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.| Flaherty vs. Tekla World Healthcare | Flaherty vs. Tekla Healthcare Investors | Flaherty vs. Tekla Life Sciences | Flaherty vs. Cohen And Steers |
| Cohen Steers vs. Cohen And Steers | Cohen Steers vs. Reaves Utility If | Cohen Steers vs. Cohen Steers Total | Cohen Steers vs. Pimco Dynamic Income |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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