Correlation Between Fidelity Infrastructure and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Fidelity Infrastructure 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 Fidelity Infrastructure and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Infrastructure and Cohen Steers Global, you can compare the effects of market volatilities on Fidelity Infrastructure 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 Fidelity Infrastructure with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Infrastructure and Cohen Steers.
Diversification Opportunities for Fidelity Infrastructure and Cohen Steers
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and Cohen is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Infrastructure and Cohen Steers Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Global and Fidelity Infrastructure 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 Fidelity Infrastructure 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 Global has no effect on the direction of Fidelity Infrastructure i.e., Fidelity Infrastructure and Cohen Steers go up and down completely randomly.
Pair Corralation between Fidelity Infrastructure and Cohen Steers
Assuming the 90 days horizon Fidelity Infrastructure is expected to generate 1.02 times more return on investment than Cohen Steers. However, Fidelity Infrastructure is 1.02 times more volatile than Cohen Steers Global. It trades about 0.07 of its potential returns per unit of risk. Cohen Steers Global is currently generating about 0.05 per unit of risk. If you would invest 1,137 in Fidelity Infrastructure on August 30, 2024 and sell it today you would earn a total of 320.00 from holding Fidelity Infrastructure or generate 28.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Infrastructure vs. Cohen Steers Global
Performance |
| Timeline |
| Fidelity Infrastructure |
| Cohen Steers Global |
Fidelity Infrastructure and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Infrastructure and Cohen Steers
The main advantage of trading using opposite Fidelity Infrastructure and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Infrastructure 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.| Fidelity Infrastructure vs. HUMANA INC | Fidelity Infrastructure vs. Aquagold International | Fidelity Infrastructure vs. Barloworld Ltd ADR | Fidelity Infrastructure vs. Morningstar Unconstrained Allocation |
| Cohen Steers vs. Cohen Steers Global | Cohen Steers vs. Cohen Steers Real | Cohen Steers vs. Cohen Steers International | Cohen Steers vs. Nuveen Global 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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