Correlation Between Federated Global and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Federated Global 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 Federated Global and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Global Allocation and Cohen Steers Low, you can compare the effects of market volatilities on Federated Global 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 Federated Global with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Global and Cohen Steers.
Diversification Opportunities for Federated Global and Cohen Steers
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Federated and Cohen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Federated Global Allocation and Cohen Steers Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Low and Federated Global 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 Federated Global Allocation 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 Low has no effect on the direction of Federated Global i.e., Federated Global and Cohen Steers go up and down completely randomly.
Pair Corralation between Federated Global and Cohen Steers
Assuming the 90 days horizon Federated Global Allocation is expected to generate 2.61 times more return on investment than Cohen Steers. However, Federated Global is 2.61 times more volatile than Cohen Steers Low. It trades about 0.07 of its potential returns per unit of risk. Cohen Steers Low is currently generating about 0.13 per unit of risk. If you would invest 1,676 in Federated Global Allocation on September 3, 2024 and sell it today you would earn a total of 334.00 from holding Federated Global Allocation or generate 19.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Global Allocation vs. Cohen Steers Low
Performance |
| Timeline |
| Federated Global All |
| Cohen Steers Low |
Federated Global and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Global and Cohen Steers
The main advantage of trading using opposite Federated Global and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Global 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.| Federated Global vs. Federated Max Cap Index | Federated Global vs. Federated Kaufmann Fund | Federated Global vs. Federated Strategic Income | Federated Global vs. Federated Bond Fund |
| Cohen Steers vs. Cohen Steers Prfrd | Cohen Steers vs. Cohen Steers Preferred | Cohen Steers vs. Preferred Securities Fund | Cohen Steers vs. Aquagold International |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| 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 | |
| Stocks Directory Find actively traded stocks across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |