Correlation Between Gabelli Equity and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Gabelli Equity 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 Gabelli Equity and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Equity Trust and Cohen Steers Qualityome, you can compare the effects of market volatilities on Gabelli Equity 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 Gabelli Equity with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Equity and Cohen Steers.
Diversification Opportunities for Gabelli Equity and Cohen Steers
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gabelli and Cohen is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Equity Trust and Cohen Steers Qualityome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Qualityome and Gabelli Equity 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 Gabelli Equity Trust 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 Qualityome has no effect on the direction of Gabelli Equity i.e., Gabelli Equity and Cohen Steers go up and down completely randomly.
Pair Corralation between Gabelli Equity and Cohen Steers
Considering the 90-day investment horizon Gabelli Equity is expected to generate 1.77 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Gabelli Equity Trust is 1.43 times less risky than Cohen Steers. It trades about 0.06 of its potential returns per unit of risk. Cohen Steers Qualityome is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,016 in Cohen Steers Qualityome on August 31, 2024 and sell it today you would earn a total of 377.00 from holding Cohen Steers Qualityome or generate 37.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Gabelli Equity Trust vs. Cohen Steers Qualityome
Performance |
| Timeline |
| Gabelli Equity Trust |
| Cohen Steers Qualityome |
Gabelli Equity and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Equity and Cohen Steers
The main advantage of trading using opposite Gabelli Equity and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Equity 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.| Gabelli Equity vs. Gabelli Utility Closed | Gabelli Equity vs. Gabelli MultiMedia Mutual | Gabelli Equity vs. Gabelli Healthcare WellnessRx | Gabelli Equity vs. Liberty All Star |
| Cohen Steers vs. MFS Investment Grade | Cohen Steers vs. Eaton Vance Municipal | Cohen Steers vs. DTF Tax Free | Cohen Steers vs. HUMANA INC |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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