Correlation Between Matthews Pacific and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Matthews Pacific 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 Matthews Pacific and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews Pacific Tiger and Cohen Steers Prfrd, you can compare the effects of market volatilities on Matthews Pacific 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 Matthews Pacific with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews Pacific and Cohen Steers.
Diversification Opportunities for Matthews Pacific and Cohen Steers
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Matthews and Cohen is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Matthews Pacific Tiger and Cohen Steers Prfrd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Prfrd and Matthews Pacific 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 Matthews Pacific Tiger 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 Prfrd has no effect on the direction of Matthews Pacific i.e., Matthews Pacific and Cohen Steers go up and down completely randomly.
Pair Corralation between Matthews Pacific and Cohen Steers
Assuming the 90 days horizon Matthews Pacific is expected to generate 1.03 times less return on investment than Cohen Steers. In addition to that, Matthews Pacific is 6.2 times more volatile than Cohen Steers Prfrd. It trades about 0.03 of its total potential returns per unit of risk. Cohen Steers Prfrd is currently generating about 0.2 per unit of volatility. If you would invest 1,166 in Cohen Steers Prfrd on September 3, 2024 and sell it today you would earn a total of 73.00 from holding Cohen Steers Prfrd or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matthews Pacific Tiger vs. Cohen Steers Prfrd
Performance |
| Timeline |
| Matthews Pacific Tiger |
| Cohen Steers Prfrd |
Matthews Pacific and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews Pacific and Cohen Steers
The main advantage of trading using opposite Matthews Pacific and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews Pacific 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.| Matthews Pacific vs. Matthews Asia Dividend | Matthews Pacific vs. Wcm Focused International | Matthews Pacific vs. Invesco Disciplined Equity | Matthews Pacific vs. Matthews Asian Growth |
| Cohen Steers vs. Virtus Dfa 2040 | Cohen Steers vs. T Rowe Price | Cohen Steers vs. T Rowe Price | Cohen Steers vs. Legg Mason Partners |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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