Correlation Between Jpmorgan Strategic and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Jpmorgan Strategic 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 Strategic 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 Strategic Income and Cohen Steers Limited, you can compare the effects of market volatilities on Jpmorgan Strategic 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 Strategic with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jpmorgan Strategic and Cohen Steers.
Diversification Opportunities for Jpmorgan Strategic and Cohen Steers
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jpmorgan and Cohen is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jpmorgan Strategic Income and Cohen Steers Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Limited and Jpmorgan Strategic 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 Strategic Income 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 Limited has no effect on the direction of Jpmorgan Strategic i.e., Jpmorgan Strategic and Cohen Steers go up and down completely randomly.
Pair Corralation between Jpmorgan Strategic and Cohen Steers
Assuming the 90 days horizon Jpmorgan Strategic is expected to generate 3.54 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Jpmorgan Strategic Income is 11.86 times less risky than Cohen Steers. It trades about 0.37 of its potential returns per unit of risk. Cohen Steers Limited is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,741 in Cohen Steers Limited on November 9, 2024 and sell it today you would earn a total of 355.00 from holding Cohen Steers Limited or generate 20.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jpmorgan Strategic Income vs. Cohen Steers Limited
Performance |
| Timeline |
| Jpmorgan Strategic Income |
| Cohen Steers Limited |
Jpmorgan Strategic and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jpmorgan Strategic and Cohen Steers
The main advantage of trading using opposite Jpmorgan Strategic and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jpmorgan Strategic 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.| Jpmorgan Strategic vs. Arrow Managed Futures | Jpmorgan Strategic vs. Fzdaqx | Jpmorgan Strategic vs. Small Pany Growth | Jpmorgan Strategic vs. Fabwx |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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