Correlation Between Cohen Steers and Growth Strategy
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Growth Strategy 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 Growth Strategy 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 Growth Strategy Fund, you can compare the effects of market volatilities on Cohen Steers and Growth Strategy 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 Growth Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Growth Strategy.
Diversification Opportunities for Cohen Steers and Growth Strategy
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cohen and Growth is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Mlp and Growth Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth 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 Mlp are associated (or correlated) with Growth Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Strategy has no effect on the direction of Cohen Steers i.e., Cohen Steers and Growth Strategy go up and down completely randomly.
Pair Corralation between Cohen Steers and Growth Strategy
Assuming the 90 days horizon Cohen Steers is expected to generate 1.23 times less return on investment than Growth Strategy. In addition to that, Cohen Steers is 1.5 times more volatile than Growth Strategy Fund. It trades about 0.06 of its total potential returns per unit of risk. Growth Strategy Fund is currently generating about 0.12 per unit of volatility. If you would invest 1,181 in Growth Strategy Fund on November 3, 2024 and sell it today you would earn a total of 109.00 from holding Growth Strategy Fund or generate 9.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Mlp vs. Growth Strategy Fund
Performance |
| Timeline |
| Cohen Steers Mlp |
| Growth Strategy |
Cohen Steers and Growth Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Growth Strategy
The main advantage of trading using opposite Cohen Steers and Growth Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Growth Strategy 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 Growth Strategy will offset losses from the drop in Growth Strategy's long position.| Cohen Steers vs. Ultrasmall Cap Profund Ultrasmall Cap | Cohen Steers vs. William Blair Small | Cohen Steers vs. Mid Cap Growth Profund | Cohen Steers vs. Small Cap Value |
| Growth Strategy vs. Dunham High Yield | Growth Strategy vs. Fidelity Capital Income | Growth Strategy vs. Federated High Yield | Growth Strategy vs. Jpmorgan 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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