Correlation Between Cohen Steers and Icon Financial
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Icon Financial 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 Icon Financial 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 Icon Financial Fund, you can compare the effects of market volatilities on Cohen Steers and Icon Financial 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 Icon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Icon Financial.
Diversification Opportunities for Cohen Steers and Icon Financial
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cohen and Icon is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Mlp and Icon Financial Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Financial 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 Icon Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Financial has no effect on the direction of Cohen Steers i.e., Cohen Steers and Icon Financial go up and down completely randomly.
Pair Corralation between Cohen Steers and Icon Financial
Assuming the 90 days horizon Cohen Steers Mlp is expected to generate 0.65 times more return on investment than Icon Financial. However, Cohen Steers Mlp is 1.54 times less risky than Icon Financial. It trades about 0.1 of its potential returns per unit of risk. Icon Financial Fund is currently generating about 0.01 per unit of risk. If you would invest 740.00 in Cohen Steers Mlp on September 4, 2024 and sell it today you would earn a total of 191.00 from holding Cohen Steers Mlp or generate 25.81% 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. Icon Financial Fund
Performance |
| Timeline |
| Cohen Steers Mlp |
| Icon Financial |
Cohen Steers and Icon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Icon Financial
The main advantage of trading using opposite Cohen Steers and Icon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Icon Financial 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 Icon Financial will offset losses from the drop in Icon Financial's long position.| Cohen Steers vs. Qs Large Cap | Cohen Steers vs. T Rowe Price | Cohen Steers vs. Scharf Global Opportunity | Cohen Steers vs. Qs Global Equity |
| Icon Financial vs. Limited Term Tax | Icon Financial vs. Bbh Intermediate Municipal | Icon Financial vs. Alliancebernstein National Municipal | Icon Financial vs. Gamco Global Telecommunications |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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