Correlation Between Cohen Steers and Locorr Market
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Locorr Market 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 Locorr Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Dividend and Locorr Market Trend, you can compare the effects of market volatilities on Cohen Steers and Locorr Market 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 Locorr Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Locorr Market.
Diversification Opportunities for Cohen Steers and Locorr Market
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cohen and Locorr is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Dividend and Locorr Market Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Locorr Market Trend 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 Dividend are associated (or correlated) with Locorr Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Locorr Market Trend has no effect on the direction of Cohen Steers i.e., Cohen Steers and Locorr Market go up and down completely randomly.
Pair Corralation between Cohen Steers and Locorr Market
Assuming the 90 days horizon Cohen Steers Dividend is expected to generate 0.18 times more return on investment than Locorr Market. However, Cohen Steers Dividend is 5.51 times less risky than Locorr Market. It trades about 0.58 of its potential returns per unit of risk. Locorr Market Trend is currently generating about -0.01 per unit of risk. If you would invest 1,061 in Cohen Steers Dividend on September 12, 2024 and sell it today you would earn a total of 3.00 from holding Cohen Steers Dividend or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.85% |
| Values | Daily Returns |
Cohen Steers Dividend vs. Locorr Market Trend
Performance |
| Timeline |
| Cohen Steers Dividend |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Locorr Market Trend |
Cohen Steers and Locorr Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Locorr Market
The main advantage of trading using opposite Cohen Steers and Locorr Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Locorr Market 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 Locorr Market will offset losses from the drop in Locorr Market's long position.| Cohen Steers vs. Locorr Market Trend | Cohen Steers vs. Artisan Emerging Markets | Cohen Steers vs. Calvert Developed Market | Cohen Steers vs. Barings Emerging Markets |
| Locorr Market vs. Pimco Trends Managed | Locorr Market vs. Pimco Trends Managed | Locorr Market vs. SCOR PK | Locorr Market 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |