Correlation Between Dynex Capital and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Dynex Capital 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 Dynex Capital and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dynex Capital and Cohen Steers Realty, you can compare the effects of market volatilities on Dynex Capital 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 Dynex Capital with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynex Capital and Cohen Steers.
Diversification Opportunities for Dynex Capital and Cohen Steers
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dynex and Cohen is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Dynex Capital 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 Dynex Capital 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 Dynex Capital 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 Dynex Capital i.e., Dynex Capital and Cohen Steers go up and down completely randomly.
Pair Corralation between Dynex Capital and Cohen Steers
Allowing for the 90-day total investment horizon Dynex Capital is expected to generate 0.75 times more return on investment than Cohen Steers. However, Dynex Capital is 1.34 times less risky than Cohen Steers. It trades about 0.14 of its potential returns per unit of risk. Cohen Steers Realty is currently generating about 0.02 per unit of risk. If you would invest 1,248 in Dynex Capital on October 25, 2024 and sell it today you would earn a total of 28.00 from holding Dynex Capital or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dynex Capital vs. Cohen Steers Realty
Performance |
| Timeline |
| Dynex Capital |
| Cohen Steers Realty |
Dynex Capital and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dynex Capital and Cohen Steers
The main advantage of trading using opposite Dynex Capital and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynex Capital 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.| Dynex Capital vs. Ellington Residential Mortgage | Dynex Capital vs. Orchid Island Capital | Dynex Capital vs. ARMOUR Residential REIT | Dynex Capital vs. Ellington Financial |
| Cohen Steers vs. Nuveen Mid Cap | Cohen Steers vs. T Rowe Price | Cohen Steers vs. Rational Dividend Capture | Cohen Steers vs. Victory Tax Exempt Fund |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |