Correlation Between Cohen Steers and Insteel Industries
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Insteel Industries 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 Cohen Steers and Insteel Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers and Insteel Industries, you can compare the effects of market volatilities on Cohen Steers and Insteel Industries 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 Cohen Steers with a short position of Insteel Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Insteel Industries.
Diversification Opportunities for Cohen Steers and Insteel Industries
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cohen and Insteel is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers and Insteel Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insteel Industries and Cohen Steers 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 Cohen Steers are associated (or correlated) with Insteel Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insteel Industries has no effect on the direction of Cohen Steers i.e., Cohen Steers and Insteel Industries go up and down completely randomly.
Pair Corralation between Cohen Steers and Insteel Industries
Assuming the 90 days horizon Cohen Steers is expected to generate 0.91 times more return on investment than Insteel Industries. However, Cohen Steers is 1.1 times less risky than Insteel Industries. It trades about 0.12 of its potential returns per unit of risk. Insteel Industries is currently generating about 0.01 per unit of risk. If you would invest 5,133 in Cohen Steers on September 14, 2024 and sell it today you would earn a total of 4,167 from holding Cohen Steers or generate 81.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.64% |
| Values | Daily Returns |
Cohen Steers vs. Insteel Industries
Performance |
| Timeline |
| Cohen Steers |
| Insteel Industries |
Cohen Steers and Insteel Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Insteel Industries
The main advantage of trading using opposite Cohen Steers and Insteel Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Insteel Industries 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 Insteel Industries will offset losses from the drop in Insteel Industries' long position.| Cohen Steers vs. Insteel Industries | Cohen Steers vs. Australian Agricultural | Cohen Steers vs. ALGOMA STEEL GROUP | Cohen Steers vs. Titan Machinery |
| Insteel Industries vs. ARROW ELECTRONICS | Insteel Industries vs. Mobilezone Holding AG | Insteel Industries vs. Ribbon Communications | Insteel Industries vs. LPKF Laser Electronics |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |