Correlation Between Gmo High and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Gmo High 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 Gmo High and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo High Yield and Cohen Steers Low, you can compare the effects of market volatilities on Gmo High 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 Gmo High with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo High and Cohen Steers.
Diversification Opportunities for Gmo High and Cohen Steers
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gmo and Cohen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Gmo High Yield 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 Gmo High 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 Gmo High Yield 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 Gmo High i.e., Gmo High and Cohen Steers go up and down completely randomly.
Pair Corralation between Gmo High and Cohen Steers
Assuming the 90 days horizon Gmo High Yield is expected to generate 2.11 times more return on investment than Cohen Steers. However, Gmo High is 2.11 times more volatile than Cohen Steers Low. It trades about 0.17 of its potential returns per unit of risk. Cohen Steers Low is currently generating about 0.33 per unit of risk. If you would invest 1,771 in Gmo High Yield on August 28, 2024 and sell it today you would earn a total of 32.00 from holding Gmo High Yield or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo High Yield vs. Cohen Steers Low
Performance |
| Timeline |
| Gmo High Yield |
| Cohen Steers Low |
Gmo High and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo High and Cohen Steers
The main advantage of trading using opposite Gmo High and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo High 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.| Gmo High vs. Ab Government Exchange | Gmo High vs. Dunham Porategovernment Bond | Gmo High vs. Lord Abbett Government | Gmo High vs. Virtus Seix Government |
| Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Mlp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |