Correlation Between Cohen Steers and Blackrock Enhanced
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Blackrock Enhanced 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 Blackrock Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Limited and Blackrock Enhanced Capital, you can compare the effects of market volatilities on Cohen Steers and Blackrock Enhanced 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 Blackrock Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Blackrock Enhanced.
Diversification Opportunities for Cohen Steers and Blackrock Enhanced
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and Blackrock is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Limited and Blackrock Enhanced Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Enhanced 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 Limited are associated (or correlated) with Blackrock Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Enhanced has no effect on the direction of Cohen Steers i.e., Cohen Steers and Blackrock Enhanced go up and down completely randomly.
Pair Corralation between Cohen Steers and Blackrock Enhanced
Considering the 90-day investment horizon Cohen Steers Limited is expected to generate 0.95 times more return on investment than Blackrock Enhanced. However, Cohen Steers Limited is 1.05 times less risky than Blackrock Enhanced. It trades about 0.13 of its potential returns per unit of risk. Blackrock Enhanced Capital is currently generating about 0.08 per unit of risk. If you would invest 1,680 in Cohen Steers Limited on August 24, 2024 and sell it today you would earn a total of 421.00 from holding Cohen Steers Limited or generate 25.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Limited vs. Blackrock Enhanced Capital
Performance |
| Timeline |
| Cohen Steers Limited |
| Blackrock Enhanced |
Cohen Steers and Blackrock Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Blackrock Enhanced
The main advantage of trading using opposite Cohen Steers and Blackrock Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Blackrock Enhanced 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 Blackrock Enhanced will offset losses from the drop in Blackrock Enhanced's long position.| Cohen Steers vs. MFS Investment Grade | Cohen Steers vs. Eaton Vance National | Cohen Steers vs. Blackrock Muniyield Quality | Cohen Steers vs. Munivest Fund |
| Blackrock Enhanced vs. Blackrock Resources Commodities | Blackrock Enhanced vs. Blackrock International Growth | Blackrock Enhanced vs. BlackRock Global Opportunities | Blackrock Enhanced vs. Eaton Vance Tax |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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