Correlation Between Cohen Steers and Saat Defensive
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Saat Defensive 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 Saat Defensive 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 Saat Defensive Strategy, you can compare the effects of market volatilities on Cohen Steers and Saat Defensive 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 Saat Defensive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Saat Defensive.
Diversification Opportunities for Cohen Steers and Saat Defensive
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and Saat is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Low and Saat Defensive Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Defensive Strategy 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 Saat Defensive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Defensive Strategy has no effect on the direction of Cohen Steers i.e., Cohen Steers and Saat Defensive go up and down completely randomly.
Pair Corralation between Cohen Steers and Saat Defensive
Assuming the 90 days horizon Cohen Steers is expected to generate 2.36 times less return on investment than Saat Defensive. In addition to that, Cohen Steers is 1.14 times more volatile than Saat Defensive Strategy. It trades about 0.12 of its total potential returns per unit of risk. Saat Defensive Strategy is currently generating about 0.31 per unit of volatility. If you would invest 930.00 in Saat Defensive Strategy on November 3, 2024 and sell it today you would earn a total of 7.00 from holding Saat Defensive Strategy or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Low vs. Saat Defensive Strategy
Performance |
| Timeline |
| Cohen Steers Low |
| Saat Defensive Strategy |
Cohen Steers and Saat Defensive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Saat Defensive
The main advantage of trading using opposite Cohen Steers and Saat Defensive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Saat Defensive 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 Saat Defensive will offset losses from the drop in Saat Defensive's long position.| Cohen Steers vs. Smallcap World Fund | Cohen Steers vs. Qs Global Equity | Cohen Steers vs. Dreyfusstandish Global Fixed | Cohen Steers vs. Gmo Global Equity |
| Saat Defensive vs. Simt Multi Asset Inflation | Saat Defensive vs. Fidelity Sai Inflationfocused | Saat Defensive vs. Arrow Managed Futures | Saat Defensive 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |