Correlation Between Jpmorgan Mortgage-backed and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Mortgage-backed 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 Jpmorgan Mortgage-backed and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jpmorgan Mortgage Backed Securities and Cohen Steers Preferred, you can compare the effects of market volatilities on Jpmorgan Mortgage-backed 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 Jpmorgan Mortgage-backed with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Mortgage-backed and Cohen Steers.
Diversification Opportunities for Jpmorgan Mortgage-backed and Cohen Steers
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jpmorgan and Cohen is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Mortgage Backed Secur and Cohen Steers Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Preferred and Jpmorgan Mortgage-backed 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 Jpmorgan Mortgage Backed Securities 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 Preferred has no effect on the direction of Jpmorgan Mortgage-backed i.e., Jpmorgan Mortgage-backed and Cohen Steers go up and down completely randomly.
Pair Corralation between Jpmorgan Mortgage-backed and Cohen Steers
Assuming the 90 days horizon Jpmorgan Mortgage Backed Securities is expected to under-perform the Cohen Steers. In addition to that, Jpmorgan Mortgage-backed is 2.19 times more volatile than Cohen Steers Preferred. It trades about -0.07 of its total potential returns per unit of risk. Cohen Steers Preferred is currently generating about -0.11 per unit of volatility. If you would invest 1,243 in Cohen Steers Preferred on August 25, 2024 and sell it today you would lose (4.00) from holding Cohen Steers Preferred or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Mortgage Backed Secur vs. Cohen Steers Preferred
Performance |
| Timeline |
| Jpmorgan Mortgage-backed |
| Cohen Steers Preferred |
Jpmorgan Mortgage-backed and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Mortgage-backed and Cohen Steers
The main advantage of trading using opposite Jpmorgan Mortgage-backed and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Mortgage-backed 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.The idea behind Jpmorgan Mortgage Backed Securities and Cohen Steers Preferred pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Mlp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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