Correlation Between Aberdeen Japan and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Aberdeen Japan 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 Aberdeen Japan and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Japan Equity and Cohen Steers Reit, you can compare the effects of market volatilities on Aberdeen Japan 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 Aberdeen Japan with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Japan and Cohen Steers.
Diversification Opportunities for Aberdeen Japan and Cohen Steers
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aberdeen and Cohen is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Japan Equity and Cohen Steers Reit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Reit and Aberdeen Japan 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 Aberdeen Japan Equity 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 Reit has no effect on the direction of Aberdeen Japan i.e., Aberdeen Japan and Cohen Steers go up and down completely randomly.
Pair Corralation between Aberdeen Japan and Cohen Steers
Considering the 90-day investment horizon Aberdeen Japan Equity is expected to generate 0.91 times more return on investment than Cohen Steers. However, Aberdeen Japan Equity is 1.1 times less risky than Cohen Steers. It trades about 0.04 of its potential returns per unit of risk. Cohen Steers Reit is currently generating about 0.04 per unit of risk. If you would invest 466.00 in Aberdeen Japan Equity on August 31, 2024 and sell it today you would earn a total of 107.00 from holding Aberdeen Japan Equity or generate 22.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen Japan Equity vs. Cohen Steers Reit
Performance |
| Timeline |
| Aberdeen Japan Equity |
| Cohen Steers Reit |
Aberdeen Japan and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Japan and Cohen Steers
The main advantage of trading using opposite Aberdeen Japan and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Japan 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.| Aberdeen Japan vs. Aberdeen Gbl Eq | Aberdeen Japan vs. Aberdeen Gbl Eq | Aberdeen Japan vs. Aberdeen Global Equty |
| Cohen Steers vs. MFS Investment Grade | Cohen Steers vs. Eaton Vance Municipal | Cohen Steers vs. DTF Tax Free | Cohen Steers vs. HUMANA INC |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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