Correlation Between FAST RETAIL and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both FAST RETAIL 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 FAST RETAIL and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FAST RETAIL ADR and Cohen Steers, you can compare the effects of market volatilities on FAST RETAIL 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 FAST RETAIL with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of FAST RETAIL and Cohen Steers.
Diversification Opportunities for FAST RETAIL and Cohen Steers
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FAST and Cohen is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding FAST RETAIL ADR and Cohen Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers and FAST RETAIL 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 FAST RETAIL ADR 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 FAST RETAIL i.e., FAST RETAIL and Cohen Steers go up and down completely randomly.
Pair Corralation between FAST RETAIL and Cohen Steers
Assuming the 90 days trading horizon FAST RETAIL is expected to generate 1.37 times less return on investment than Cohen Steers. In addition to that, FAST RETAIL is 1.04 times more volatile than Cohen Steers. It trades about 0.08 of its total potential returns per unit of risk. Cohen Steers is currently generating about 0.11 per unit of volatility. If you would invest 5,665 in Cohen Steers on September 3, 2024 and sell it today you would earn a total of 3,885 from holding Cohen Steers or generate 68.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FAST RETAIL ADR vs. Cohen Steers
Performance |
| Timeline |
| FAST RETAIL ADR |
| Cohen Steers |
FAST RETAIL and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FAST RETAIL and Cohen Steers
The main advantage of trading using opposite FAST RETAIL and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FAST RETAIL 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.| FAST RETAIL vs. JIAHUA STORES | FAST RETAIL vs. FEMALE HEALTH | FAST RETAIL vs. EPSILON HEALTHCARE LTD | FAST RETAIL vs. MARKET VECTR RETAIL |
| Cohen Steers vs. RETAIL FOOD GROUP | Cohen Steers vs. Vastned Retail NV | Cohen Steers vs. JAPAN TOBACCO UNSPADR12 | Cohen Steers vs. CSSC Offshore Marine |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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