Correlation Between Kinetics Market and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Kinetics Market 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 Kinetics Market and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetics Market Opportunities and Cohen Steers Closed, you can compare the effects of market volatilities on Kinetics Market 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 Kinetics Market with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Market and Cohen Steers.
Diversification Opportunities for Kinetics Market and Cohen Steers
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinetics and Cohen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Market Opportunities and Cohen Steers Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Closed and Kinetics Market 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 Kinetics Market Opportunities 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 Closed has no effect on the direction of Kinetics Market i.e., Kinetics Market and Cohen Steers go up and down completely randomly.
Pair Corralation between Kinetics Market and Cohen Steers
Assuming the 90 days horizon Kinetics Market Opportunities is expected to generate 1.55 times more return on investment than Cohen Steers. However, Kinetics Market is 1.55 times more volatile than Cohen Steers Closed. It trades about 0.11 of its potential returns per unit of risk. Cohen Steers Closed is currently generating about 0.07 per unit of risk. If you would invest 4,659 in Kinetics Market Opportunities on August 27, 2024 and sell it today you would earn a total of 5,324 from holding Kinetics Market Opportunities or generate 114.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Market Opportunities vs. Cohen Steers Closed
Performance |
| Timeline |
| Kinetics Market Oppo |
| Cohen Steers Closed |
Kinetics Market and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Market and Cohen Steers
The main advantage of trading using opposite Kinetics Market and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Market 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.| Kinetics Market vs. Pace High Yield | Kinetics Market vs. Victory High Income | Kinetics Market vs. Metropolitan West High | Kinetics Market vs. Lgm Risk Managed |
| Cohen Steers vs. Allspring Income Opportunities | Cohen Steers vs. Allspring Global Dividend | Cohen Steers vs. Blackstone Gso Senior | Cohen Steers vs. John Hancock Preferred |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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