Correlation Between Huber Capital and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Huber Capital 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 Huber Capital and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huber Capital Diversified and Cohen Steers Low, you can compare the effects of market volatilities on Huber Capital 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 Huber Capital with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huber Capital and Cohen Steers.
Diversification Opportunities for Huber Capital and Cohen Steers
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huber and Cohen is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Huber Capital Diversified 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 Huber Capital 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 Huber Capital Diversified 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 Huber Capital i.e., Huber Capital and Cohen Steers go up and down completely randomly.
Pair Corralation between Huber Capital and Cohen Steers
Assuming the 90 days horizon Huber Capital Diversified is expected to generate 8.7 times more return on investment than Cohen Steers. However, Huber Capital is 8.7 times more volatile than Cohen Steers Low. It trades about 0.11 of its potential returns per unit of risk. Cohen Steers Low is currently generating about 0.19 per unit of risk. If you would invest 2,363 in Huber Capital Diversified on September 3, 2024 and sell it today you would earn a total of 150.00 from holding Huber Capital Diversified or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huber Capital Diversified vs. Cohen Steers Low
Performance |
| Timeline |
| Huber Capital Diversified |
| Cohen Steers Low |
Huber Capital and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huber Capital and Cohen Steers
The main advantage of trading using opposite Huber Capital and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huber Capital 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.| Huber Capital vs. Vanguard Value Index | Huber Capital vs. Dodge Cox Stock | Huber Capital vs. American Mutual Fund | Huber Capital vs. American Funds American |
| Cohen Steers vs. T Rowe Price | Cohen Steers vs. T Rowe Price | Cohen Steers vs. Arrow Managed Futures | Cohen Steers vs. Barings Emerging Markets |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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