Correlation Between Cohen Steers and Federated Global
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Federated Global 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 Federated Global 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 Federated Global Allocation, you can compare the effects of market volatilities on Cohen Steers and Federated Global 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 Federated Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Federated Global.
Diversification Opportunities for Cohen Steers and Federated Global
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and FEDERATED is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Low and Federated Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Global All 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 Federated Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Global All has no effect on the direction of Cohen Steers i.e., Cohen Steers and Federated Global go up and down completely randomly.
Pair Corralation between Cohen Steers and Federated Global
Assuming the 90 days horizon Cohen Steers is expected to generate 15.13 times less return on investment than Federated Global. But when comparing it to its historical volatility, Cohen Steers Low is 4.7 times less risky than Federated Global. It trades about 0.1 of its potential returns per unit of risk. Federated Global Allocation is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,947 in Federated Global Allocation on September 1, 2024 and sell it today you would earn a total of 63.00 from holding Federated Global Allocation or generate 3.24% 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. Federated Global Allocation
Performance |
| Timeline |
| Cohen Steers Low |
| Federated Global All |
Cohen Steers and Federated Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Federated Global
The main advantage of trading using opposite Cohen Steers and Federated Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Federated Global 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 Federated Global will offset losses from the drop in Federated Global's long position.| Cohen Steers vs. Federated Global Allocation | Cohen Steers vs. Dreyfusstandish Global Fixed | Cohen Steers vs. Scharf Global Opportunity | Cohen Steers vs. Rbc Global Opportunities |
| Federated Global vs. Federated Max Cap Index | Federated Global vs. Federated Fund For | Federated Global vs. Aquagold International | Federated Global vs. Thrivent High Yield |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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