Correlation Between Fixed Income and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Fixed Income 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 Fixed Income and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fixed Income Shares and Cohen Steers Preferred, you can compare the effects of market volatilities on Fixed Income 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 Fixed Income with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fixed Income and Cohen Steers.
Diversification Opportunities for Fixed Income and Cohen Steers
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fixed and Cohen is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Fixed Income Shares and Cohen Steers Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Preferred and Fixed Income 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 Fixed Income Shares 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 Preferred has no effect on the direction of Fixed Income i.e., Fixed Income and Cohen Steers go up and down completely randomly.
Pair Corralation between Fixed Income and Cohen Steers
Assuming the 90 days horizon Fixed Income is expected to generate 1.4 times less return on investment than Cohen Steers. In addition to that, Fixed Income is 1.15 times more volatile than Cohen Steers Preferred. It trades about 0.06 of its total potential returns per unit of risk. Cohen Steers Preferred is currently generating about 0.1 per unit of volatility. If you would invest 851.00 in Cohen Steers Preferred on September 3, 2024 and sell it today you would earn a total of 165.00 from holding Cohen Steers Preferred or generate 19.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fixed Income Shares vs. Cohen Steers Preferred
Performance |
| Timeline |
| Fixed Income Shares |
| Cohen Steers Preferred |
Fixed Income and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fixed Income and Cohen Steers
The main advantage of trading using opposite Fixed Income and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fixed Income 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.| Fixed Income vs. HUMANA INC | Fixed Income vs. Aquagold International | Fixed Income vs. Barloworld Ltd ADR | Fixed Income vs. Morningstar Unconstrained Allocation |
| Cohen Steers vs. Bbh Intermediate Municipal | Cohen Steers vs. Dreyfusstandish Global Fixed | Cohen Steers vs. Ambrus Core Bond | Cohen Steers vs. Federated Pennsylvania Municipal |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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