Correlation Between Cohen Steers and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Sterling Capital 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 Sterling Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Low and Sterling Capital Short, you can compare the effects of market volatilities on Cohen Steers and Sterling Capital 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 Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Sterling Capital.
Diversification Opportunities for Cohen Steers and Sterling Capital
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cohen and Sterling is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Low and Sterling Capital Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Short 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 Low are associated (or correlated) with Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Short has no effect on the direction of Cohen Steers i.e., Cohen Steers and Sterling Capital go up and down completely randomly.
Pair Corralation between Cohen Steers and Sterling Capital
Assuming the 90 days horizon Cohen Steers Low is expected to generate 0.9 times more return on investment than Sterling Capital. However, Cohen Steers Low is 1.11 times less risky than Sterling Capital. It trades about -0.03 of its potential returns per unit of risk. Sterling Capital Short is currently generating about -0.05 per unit of risk. If you would invest 945.00 in Cohen Steers Low on September 3, 2024 and sell it today you would lose (1.00) from holding Cohen Steers Low or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Low vs. Sterling Capital Short
Performance |
| Timeline |
| Cohen Steers Low |
| Sterling Capital Short |
Cohen Steers and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Sterling Capital
The main advantage of trading using opposite Cohen Steers and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital's long position.| Cohen Steers vs. Cohen Steers Prfrd | Cohen Steers vs. Cohen Steers Preferred | Cohen Steers vs. Preferred Securities Fund | Cohen Steers vs. Aquagold International |
| Sterling Capital vs. Bbh Intermediate Municipal | Sterling Capital vs. Federated Pennsylvania Municipal | Sterling Capital vs. Limited Term Tax | Sterling Capital vs. Ab Bond Inflation |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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