Correlation Between Cohen Steers and IHIT
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and IHIT 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 IHIT 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 IHIT, you can compare the effects of market volatilities on Cohen Steers and IHIT 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 IHIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and IHIT.
Diversification Opportunities for Cohen Steers and IHIT
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cohen and IHIT is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Limited and IHIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHIT 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 IHIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHIT has no effect on the direction of Cohen Steers i.e., Cohen Steers and IHIT go up and down completely randomly.
Pair Corralation between Cohen Steers and IHIT
If you would invest 2,026 in Cohen Steers Limited on November 3, 2024 and sell it today you would earn a total of 51.00 from holding Cohen Steers Limited or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Cohen Steers Limited vs. IHIT
Performance |
| Timeline |
| Cohen Steers Limited |
| IHIT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cohen Steers and IHIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and IHIT
The main advantage of trading using opposite Cohen Steers and IHIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, IHIT 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 IHIT will offset losses from the drop in IHIT's long position.| Cohen Steers vs. Neuberger Berman IMF | Cohen Steers vs. Nuveen Amt Free Municipal | Cohen Steers vs. Delaware Investments Florida | Cohen Steers vs. Invesco Trust For |
| IHIT vs. MFS Investment Grade | IHIT vs. Eaton Vance National | IHIT vs. Nuveen California Select | IHIT vs. Federated Premier Municipal |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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