Correlation Between Embrace Change and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Embrace Change 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 Embrace Change and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Embrace Change Acquisition and Cohen Steers, you can compare the effects of market volatilities on Embrace Change 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 Embrace Change with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embrace Change and Cohen Steers.
Diversification Opportunities for Embrace Change and Cohen Steers
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Embrace and Cohen is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Embrace Change Acquisition and Cohen Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers and Embrace Change 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 Embrace Change Acquisition 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 has no effect on the direction of Embrace Change i.e., Embrace Change and Cohen Steers go up and down completely randomly.
Pair Corralation between Embrace Change and Cohen Steers
Assuming the 90 days horizon Embrace Change Acquisition is expected to under-perform the Cohen Steers. But the stock apears to be less risky and, when comparing its historical volatility, Embrace Change Acquisition is 16.13 times less risky than Cohen Steers. The stock trades about -0.21 of its potential returns per unit of risk. The Cohen Steers is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 10,037 in Cohen Steers on August 31, 2024 and sell it today you would earn a total of 429.00 from holding Cohen Steers or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Embrace Change Acquisition vs. Cohen Steers
Performance |
| Timeline |
| Embrace Change Acqui |
| Cohen Steers |
Embrace Change and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embrace Change and Cohen Steers
The main advantage of trading using opposite Embrace Change and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embrace Change 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.| Embrace Change vs. PowerUp Acquisition Corp | Embrace Change vs. HUMANA INC | Embrace Change vs. Aquagold International | Embrace Change vs. Barloworld Ltd ADR |
| Cohen Steers vs. Federated Premier Municipal | Cohen Steers vs. Blackrock Muniyield | Cohen Steers vs. Diamond Hill Investment | Cohen Steers vs. NXG NextGen Infrastructure |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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