Correlation Between Gabelli Global and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Gabelli 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 Gabelli 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 Gabelli Global Financial and Cohen Steers Prefrd, you can compare the effects of market volatilities on Gabelli 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 Gabelli Global with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Global and Cohen Steers.
Diversification Opportunities for Gabelli Global and Cohen Steers
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gabelli and Cohen is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Financial and Cohen Steers Prefrd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Prefrd and Gabelli 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 Gabelli Global Financial 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 Prefrd has no effect on the direction of Gabelli Global i.e., Gabelli Global and Cohen Steers go up and down completely randomly.
Pair Corralation between Gabelli Global and Cohen Steers
Assuming the 90 days horizon Gabelli Global Financial is expected to generate 2.7 times more return on investment than Cohen Steers. However, Gabelli Global is 2.7 times more volatile than Cohen Steers Prefrd. It trades about 0.1 of its potential returns per unit of risk. Cohen Steers Prefrd is currently generating about 0.07 per unit of risk. If you would invest 1,028 in Gabelli Global Financial on September 3, 2024 and sell it today you would earn a total of 605.00 from holding Gabelli Global Financial or generate 58.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Global Financial vs. Cohen Steers Prefrd
Performance |
| Timeline |
| Gabelli Global Financial |
| Cohen Steers Prefrd |
Gabelli Global and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Global and Cohen Steers
The main advantage of trading using opposite Gabelli Global and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli 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.| Gabelli Global vs. Ultra Short Fixed Income | Gabelli Global vs. Ms Global Fixed | Gabelli Global vs. Bbh Intermediate Municipal | Gabelli Global vs. Limited Term Tax |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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