Correlation Between Cohen Steers and Templeton Emerging
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Templeton Emerging 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 Templeton Emerging 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 Templeton Emerging Markets, you can compare the effects of market volatilities on Cohen Steers and Templeton Emerging 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 Templeton Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Templeton Emerging.
Diversification Opportunities for Cohen Steers and Templeton Emerging
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and Templeton is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Limited and Templeton Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Emerging 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 Templeton Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Emerging has no effect on the direction of Cohen Steers i.e., Cohen Steers and Templeton Emerging go up and down completely randomly.
Pair Corralation between Cohen Steers and Templeton Emerging
Considering the 90-day investment horizon Cohen Steers Limited is expected to generate 0.66 times more return on investment than Templeton Emerging. However, Cohen Steers Limited is 1.52 times less risky than Templeton Emerging. It trades about 0.1 of its potential returns per unit of risk. Templeton Emerging Markets is currently generating about 0.04 per unit of risk. If you would invest 1,606 in Cohen Steers Limited on August 31, 2024 and sell it today you would earn a total of 488.00 from holding Cohen Steers Limited or generate 30.39% 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. Templeton Emerging Markets
Performance |
| Timeline |
| Cohen Steers Limited |
| Templeton Emerging |
Cohen Steers and Templeton Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Templeton Emerging
The main advantage of trading using opposite Cohen Steers and Templeton Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Templeton Emerging 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 Templeton Emerging will offset losses from the drop in Templeton Emerging's long position.| Cohen Steers vs. MFS Investment Grade | Cohen Steers vs. Eaton Vance Municipal | Cohen Steers vs. DTF Tax Free | Cohen Steers vs. HUMANA INC |
| Templeton Emerging vs. Tekla Healthcare Investors | Templeton Emerging vs. Cohen Steers Limited | Templeton Emerging vs. Blackrock Enhanced Capital | Templeton Emerging vs. Tekla Life Sciences |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |