Correlation Between Cohen Steers and Dunham Real
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Dunham Real 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 Dunham Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Mlp and Dunham Real Estate, you can compare the effects of market volatilities on Cohen Steers and Dunham Real 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 Dunham Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Dunham Real.
Diversification Opportunities for Cohen Steers and Dunham Real
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and Dunham is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Mlp and Dunham Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Real Estate 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 Mlp are associated (or correlated) with Dunham Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Real Estate has no effect on the direction of Cohen Steers i.e., Cohen Steers and Dunham Real go up and down completely randomly.
Pair Corralation between Cohen Steers and Dunham Real
Assuming the 90 days horizon Cohen Steers Mlp is expected to under-perform the Dunham Real. In addition to that, Cohen Steers is 1.13 times more volatile than Dunham Real Estate. It trades about -0.11 of its total potential returns per unit of risk. Dunham Real Estate is currently generating about 0.01 per unit of volatility. If you would invest 1,410 in Dunham Real Estate on November 28, 2024 and sell it today you would earn a total of 2.00 from holding Dunham Real Estate or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Mlp vs. Dunham Real Estate
Performance |
| Timeline |
| Cohen Steers Mlp |
| Dunham Real Estate |
Cohen Steers and Dunham Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Dunham Real
The main advantage of trading using opposite Cohen Steers and Dunham Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Dunham Real 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 Dunham Real will offset losses from the drop in Dunham Real's long position.| Cohen Steers vs. Jpmorgan Diversified Fund | Cohen Steers vs. Wilmington Diversified Income | Cohen Steers vs. Delaware Limited Term Diversified | Cohen Steers vs. Principal Lifetime Hybrid |
| Dunham Real vs. Aqr Diversified Arbitrage | Dunham Real vs. Guidepath Conservative Income | Dunham Real vs. Massmutual Premier Diversified | Dunham Real vs. Global Diversified 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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