Correlation Between Helios Fairfax and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Helios Fairfax 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 Helios Fairfax and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helios Fairfax Partners and Cohen Steers, you can compare the effects of market volatilities on Helios Fairfax 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 Helios Fairfax with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helios Fairfax and Cohen Steers.
Diversification Opportunities for Helios Fairfax and Cohen Steers
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Helios and Cohen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Helios Fairfax Partners and Cohen Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers and Helios Fairfax 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 Helios Fairfax Partners 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 Helios Fairfax i.e., Helios Fairfax and Cohen Steers go up and down completely randomly.
Pair Corralation between Helios Fairfax and Cohen Steers
Assuming the 90 days horizon Helios Fairfax Partners is expected to under-perform the Cohen Steers. In addition to that, Helios Fairfax is 1.26 times more volatile than Cohen Steers. It trades about -0.2 of its total potential returns per unit of risk. Cohen Steers is currently generating about 0.22 per unit of volatility. If you would invest 9,819 in Cohen Steers on September 1, 2024 and sell it today you would earn a total of 647.00 from holding Cohen Steers or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helios Fairfax Partners vs. Cohen Steers
Performance |
| Timeline |
| Helios Fairfax Partners |
| Cohen Steers |
Helios Fairfax and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helios Fairfax and Cohen Steers
The main advantage of trading using opposite Helios Fairfax and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helios Fairfax 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.| Helios Fairfax vs. Blackhawk Growth Corp | Helios Fairfax vs. Guardian Capital Group | Helios Fairfax vs. Flow Capital Corp | Helios Fairfax vs. Princeton Capital |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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