Correlation Between CSSC Offshore and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both CSSC Offshore 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 CSSC Offshore and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSSC Offshore Marine and Cohen Steers, you can compare the effects of market volatilities on CSSC Offshore 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 CSSC Offshore with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Cohen Steers.
Diversification Opportunities for CSSC Offshore and Cohen Steers
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CSSC and Cohen is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Cohen Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers and CSSC Offshore 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 CSSC Offshore Marine 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 has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Cohen Steers go up and down completely randomly.
Pair Corralation between CSSC Offshore and Cohen Steers
Assuming the 90 days trading horizon CSSC Offshore is expected to generate 2.64 times less return on investment than Cohen Steers. In addition to that, CSSC Offshore is 1.53 times more volatile than Cohen Steers. It trades about 0.02 of its total potential returns per unit of risk. Cohen Steers is currently generating about 0.08 per unit of volatility. If you would invest 5,549 in Cohen Steers on September 12, 2024 and sell it today you would earn a total of 3,651 from holding Cohen Steers or generate 65.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Cohen Steers
Performance |
| Timeline |
| CSSC Offshore Marine |
| Cohen Steers |
CSSC Offshore and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Cohen Steers
The main advantage of trading using opposite CSSC Offshore and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore 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.| CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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