Correlation Between Cohen Steers and Franklin Adjustable
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Franklin Adjustable 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 Cohen Steers and Franklin Adjustable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers International and Franklin Adjustable Government, you can compare the effects of market volatilities on Cohen Steers and Franklin Adjustable 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 Cohen Steers with a short position of Franklin Adjustable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Franklin Adjustable.
Diversification Opportunities for Cohen Steers and Franklin Adjustable
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cohen and Franklin is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers International and Franklin Adjustable Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Adjustable and Cohen Steers 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 Cohen Steers International are associated (or correlated) with Franklin Adjustable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Adjustable has no effect on the direction of Cohen Steers i.e., Cohen Steers and Franklin Adjustable go up and down completely randomly.
Pair Corralation between Cohen Steers and Franklin Adjustable
If you would invest 787.00 in Cohen Steers International on November 3, 2024 and sell it today you would earn a total of 29.00 from holding Cohen Steers International or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers International vs. Franklin Adjustable Government
Performance |
| Timeline |
| Cohen Steers Interna |
| Franklin Adjustable |
Cohen Steers and Franklin Adjustable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Franklin Adjustable
The main advantage of trading using opposite Cohen Steers and Franklin Adjustable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Franklin Adjustable 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 Franklin Adjustable will offset losses from the drop in Franklin Adjustable's long position.| Cohen Steers vs. Franklin Adjustable Government | Cohen Steers vs. Aig Government Money | Cohen Steers vs. Prudential Government Money | Cohen Steers vs. Hsbc Government Money |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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