Correlation Between Fbanjx and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Fbanjx 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 Fbanjx and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fbanjx and Cohen Steers Realty, you can compare the effects of market volatilities on Fbanjx 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 Fbanjx with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fbanjx and Cohen Steers.
Diversification Opportunities for Fbanjx and Cohen Steers
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fbanjx and Cohen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Fbanjx 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 Fbanjx 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 Fbanjx 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 Fbanjx i.e., Fbanjx and Cohen Steers go up and down completely randomly.
Pair Corralation between Fbanjx and Cohen Steers
Assuming the 90 days trading horizon Fbanjx is expected to generate 0.62 times more return on investment than Cohen Steers. However, Fbanjx is 1.63 times less risky than Cohen Steers. It trades about 0.16 of its potential returns per unit of risk. Cohen Steers Realty is currently generating about 0.1 per unit of risk. If you would invest 949.00 in Fbanjx on November 3, 2024 and sell it today you would earn a total of 20.00 from holding Fbanjx or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Fbanjx vs. Cohen Steers Realty
Performance |
| Timeline |
| Fbanjx |
| Cohen Steers Realty |
Fbanjx and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fbanjx and Cohen Steers
The main advantage of trading using opposite Fbanjx and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fbanjx 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.| Fbanjx vs. Asg Managed Futures | Fbanjx vs. Simt Multi Asset Inflation | Fbanjx vs. Aqr Managed Futures | Fbanjx vs. Ab Bond Inflation |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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