Correlation Between Cohen Steers and Smallcap Fund
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Smallcap Fund 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 Smallcap Fund 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 Smallcap Fund Fka, you can compare the effects of market volatilities on Cohen Steers and Smallcap Fund 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 Smallcap Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Smallcap Fund.
Diversification Opportunities for Cohen Steers and Smallcap Fund
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and Smallcap is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Mlp and Smallcap Fund Fka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smallcap Fund Fka 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 Smallcap Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smallcap Fund Fka has no effect on the direction of Cohen Steers i.e., Cohen Steers and Smallcap Fund go up and down completely randomly.
Pair Corralation between Cohen Steers and Smallcap Fund
Assuming the 90 days horizon Cohen Steers Mlp is expected to generate 0.75 times more return on investment than Smallcap Fund. However, Cohen Steers Mlp is 1.33 times less risky than Smallcap Fund. It trades about 0.07 of its potential returns per unit of risk. Smallcap Fund Fka is currently generating about 0.03 per unit of risk. If you would invest 752.00 in Cohen Steers Mlp on November 7, 2024 and sell it today you would earn a total of 117.00 from holding Cohen Steers Mlp or generate 15.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Cohen Steers Mlp vs. Smallcap Fund Fka
Performance |
| Timeline |
| Cohen Steers Mlp |
| Smallcap Fund Fka |
Cohen Steers and Smallcap Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Smallcap Fund
The main advantage of trading using opposite Cohen Steers and Smallcap Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Smallcap Fund 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 Smallcap Fund will offset losses from the drop in Smallcap Fund's long position.| Cohen Steers vs. Baird Quality Intermediate | Cohen Steers vs. Franklin Adjustable Government | Cohen Steers vs. T Rowe Price | Cohen Steers vs. Oppenheimer Rochester Mn |
| Smallcap Fund vs. Allianzgi Diversified Income | Smallcap Fund vs. Issachar Fund Class | Smallcap Fund vs. Jhancock Diversified Macro | Smallcap Fund vs. Lord Abbett Diversified |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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