Correlation Between Hunter Small and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Hunter Small 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 Hunter Small and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hunter Small Cap and Cohen Steers Real, you can compare the effects of market volatilities on Hunter Small 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 Hunter Small with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunter Small and Cohen Steers.
Diversification Opportunities for Hunter Small and Cohen Steers
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunter and Cohen is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hunter Small Cap and Cohen Steers Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Real and Hunter Small 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 Hunter Small Cap 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 Real has no effect on the direction of Hunter Small i.e., Hunter Small and Cohen Steers go up and down completely randomly.
Pair Corralation between Hunter Small and Cohen Steers
Assuming the 90 days horizon Hunter Small Cap is expected to generate 1.91 times more return on investment than Cohen Steers. However, Hunter Small is 1.91 times more volatile than Cohen Steers Real. It trades about 0.06 of its potential returns per unit of risk. Cohen Steers Real is currently generating about 0.07 per unit of risk. If you would invest 1,103 in Hunter Small Cap on November 3, 2024 and sell it today you would earn a total of 171.00 from holding Hunter Small Cap or generate 15.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunter Small Cap vs. Cohen Steers Real
Performance |
| Timeline |
| Hunter Small Cap |
| Cohen Steers Real |
Hunter Small and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunter Small and Cohen Steers
The main advantage of trading using opposite Hunter Small and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunter Small 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.| Hunter Small vs. James Alpha Structured | Hunter Small vs. Calamos Antetokounmpo Sustainable | Hunter Small vs. Ultra Short Fixed Income | Hunter Small vs. Vanguard Wellington Fund |
| Cohen Steers vs. Aamhimco Short Duration | Cohen Steers vs. Fidelity Flex Servative | Cohen Steers vs. Blackrock Short Obligations | Cohen Steers vs. Oakhurst Short Duration |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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