Correlation Between First Trust and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both First Trust 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 First Trust and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Energy and Cohen Steers Limited, you can compare the effects of market volatilities on First Trust 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 First Trust with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and Cohen Steers.
Diversification Opportunities for First Trust and Cohen Steers
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Cohen is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Energy and Cohen Steers Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Limited and First Trust 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 First Trust Energy 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 Limited has no effect on the direction of First Trust i.e., First Trust and Cohen Steers go up and down completely randomly.
Pair Corralation between First Trust and Cohen Steers
If you would invest 2,026 in Cohen Steers Limited on November 3, 2024 and sell it today you would earn a total of 51.00 from holding Cohen Steers Limited or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
First Trust Energy vs. Cohen Steers Limited
Performance |
| Timeline |
| First Trust Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cohen Steers Limited |
First Trust and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and Cohen Steers
The main advantage of trading using opposite First Trust and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust 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.| First Trust vs. Eagle Point Income | First Trust vs. European Equity Closed | First Trust vs. John Hancock Income | First Trust vs. First Trust Intermediate |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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