Correlation Between Barings Corporate and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Barings Corporate and Cohen Steers 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 Barings Corporate and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Corporate Investors and Cohen Steers Qualityome, you can compare the effects of market volatilities on Barings Corporate and Cohen Steers 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 Barings Corporate with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Corporate and Cohen Steers.
Diversification Opportunities for Barings Corporate and Cohen Steers
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barings and Cohen is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Barings Corporate Investors and Cohen Steers Qualityome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Qualityome and Barings Corporate 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 Barings Corporate Investors are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Qualityome has no effect on the direction of Barings Corporate i.e., Barings Corporate and Cohen Steers go up and down completely randomly.
Pair Corralation between Barings Corporate and Cohen Steers
Considering the 90-day investment horizon Barings Corporate Investors is expected to generate 0.99 times more return on investment than Cohen Steers. However, Barings Corporate Investors is 1.01 times less risky than Cohen Steers. It trades about 0.11 of its potential returns per unit of risk. Cohen Steers Qualityome is currently generating about 0.03 per unit of risk. If you would invest 1,163 in Barings Corporate Investors on November 19, 2024 and sell it today you would earn a total of 1,110 from holding Barings Corporate Investors or generate 95.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Corporate Investors vs. Cohen Steers Qualityome
Performance |
| Timeline |
| Barings Corporate |
| Cohen Steers Qualityome |
Barings Corporate and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Corporate and Cohen Steers
The main advantage of trading using opposite Barings Corporate and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Corporate position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Barings Corporate vs. Eaton Vance National | Barings Corporate vs. John Hancock Investors | Barings Corporate vs. MFS Municipal Income | Barings Corporate vs. RiverNorth Flexible Municipalome |
| Cohen Steers vs. Cohen And Steers | Cohen Steers vs. Reaves Utility If | Cohen Steers vs. Cohen Steers Total | Cohen Steers vs. Pimco Dynamic Income |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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