Correlation Between Flaherty Crumrine and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Flaherty Crumrine 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 Flaherty Crumrine and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flaherty Crumrine Preferred and Cohen Steers Total, you can compare the effects of market volatilities on Flaherty Crumrine 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 Flaherty Crumrine with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flaherty Crumrine and Cohen Steers.
Diversification Opportunities for Flaherty Crumrine and Cohen Steers
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Flaherty and Cohen is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Flaherty Crumrine Preferred and Cohen Steers Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Total and Flaherty Crumrine 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 Flaherty Crumrine Preferred 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 Total has no effect on the direction of Flaherty Crumrine i.e., Flaherty Crumrine and Cohen Steers go up and down completely randomly.
Pair Corralation between Flaherty Crumrine and Cohen Steers
Considering the 90-day investment horizon Flaherty Crumrine is expected to generate 1.63 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Flaherty Crumrine Preferred is 1.42 times less risky than Cohen Steers. It trades about 0.13 of its potential returns per unit of risk. Cohen Steers Total is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,095 in Cohen Steers Total on September 1, 2024 and sell it today you would earn a total of 221.00 from holding Cohen Steers Total or generate 20.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flaherty Crumrine Preferred vs. Cohen Steers Total
Performance |
| Timeline |
| Flaherty Crumrine |
| Cohen Steers Total |
Flaherty Crumrine and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flaherty Crumrine and Cohen Steers
The main advantage of trading using opposite Flaherty Crumrine and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flaherty Crumrine 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.| Flaherty Crumrine vs. Flaherty Crumrine Total | Flaherty Crumrine vs. Flaherty Crumrine Preferred | Flaherty Crumrine vs. John Hancock Preferred | Flaherty Crumrine vs. Flaherty and Crumrine |
| Cohen Steers vs. Cohen Steers Reit | Cohen Steers vs. Cohen And Steers | Cohen Steers vs. Reaves Utility If | Cohen Steers vs. BlackRock Science Tech |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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