Correlation Between Cohen Steers and Tekla Life
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Tekla Life 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 Tekla Life 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 Tekla Life Sciences, you can compare the effects of market volatilities on Cohen Steers and Tekla Life 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 Tekla Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Tekla Life.
Diversification Opportunities for Cohen Steers and Tekla Life
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cohen and Tekla is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Limited and Tekla Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekla Life Sciences 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 Tekla Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekla Life Sciences has no effect on the direction of Cohen Steers i.e., Cohen Steers and Tekla Life go up and down completely randomly.
Pair Corralation between Cohen Steers and Tekla Life
Considering the 90-day investment horizon Cohen Steers Limited is expected to generate 0.39 times more return on investment than Tekla Life. However, Cohen Steers Limited is 2.55 times less risky than Tekla Life. It trades about 0.03 of its potential returns per unit of risk. Tekla Life Sciences is currently generating about -0.13 per unit of risk. If you would invest 2,090 in Cohen Steers Limited on August 28, 2024 and sell it today you would earn a total of 7.00 from holding Cohen Steers Limited or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Limited vs. Tekla Life Sciences
Performance |
| Timeline |
| Cohen Steers Limited |
| Tekla Life Sciences |
Cohen Steers and Tekla Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Tekla Life
The main advantage of trading using opposite Cohen Steers and Tekla Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Tekla Life 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 Tekla Life will offset losses from the drop in Tekla Life's long position.| Cohen Steers vs. Flaherty and Crumrine | Cohen Steers vs. John Hancock Preferred | Cohen Steers vs. John Hancock Preferred | Cohen Steers vs. John Hancock Preferred |
| Tekla Life vs. Tekla World Healthcare | Tekla Life vs. Tekla Healthcare Opportunities | Tekla Life vs. Royce Value Closed | Tekla Life vs. John Hancock Financial |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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