Correlation Between Dow Jones and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Dow Jones 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 Dow Jones and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Cohen Steers Total, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Cohen Steers.
Diversification Opportunities for Dow Jones and Cohen Steers
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dow and Cohen is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Cohen Steers Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Total and Dow Jones 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 Dow Jones Industrial 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 Total has no effect on the direction of Dow Jones i.e., Dow Jones and Cohen Steers go up and down completely randomly.
Pair Corralation between Dow Jones and Cohen Steers
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.86 times more return on investment than Cohen Steers. However, Dow Jones Industrial is 1.17 times less risky than Cohen Steers. It trades about 0.26 of its potential returns per unit of risk. Cohen Steers Total is currently generating about -0.02 per unit of risk. If you would invest 4,238,757 in Dow Jones Industrial on August 28, 2024 and sell it today you would earn a total of 234,900 from holding Dow Jones Industrial or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Cohen Steers Total
Performance |
| Timeline |
Dow Jones and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Cohen Steers Total
Pair trading matchups for Cohen Steers
Pair Trading with Dow Jones and Cohen Steers
The main advantage of trading using opposite Dow Jones and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
| Cohen Steers vs. Cohen And Steers | Cohen Steers vs. Reaves Utility If | Cohen Steers vs. Pimco Dynamic Income | Cohen Steers vs. Cohen Steers Reit |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |