Correlation Between Cohen Steers and Energy Services
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Energy Services 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 Energy Services 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 Energy Services Fund, you can compare the effects of market volatilities on Cohen Steers and Energy Services 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 Energy Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Energy Services.
Diversification Opportunities for Cohen Steers and Energy Services
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cohen and Energy is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Mlp and Energy Services Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Services 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 Energy Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Services has no effect on the direction of Cohen Steers i.e., Cohen Steers and Energy Services go up and down completely randomly.
Pair Corralation between Cohen Steers and Energy Services
Assuming the 90 days horizon Cohen Steers Mlp is expected to under-perform the Energy Services. But the mutual fund apears to be less risky and, when comparing its historical volatility, Cohen Steers Mlp is 1.21 times less risky than Energy Services. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Energy Services Fund is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 23,440 in Energy Services Fund on November 4, 2024 and sell it today you would lose (54.00) from holding Energy Services Fund or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Cohen Steers Mlp vs. Energy Services Fund
Performance |
| Timeline |
| Cohen Steers Mlp |
| Energy Services |
Cohen Steers and Energy Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Energy Services
The main advantage of trading using opposite Cohen Steers and Energy Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Energy Services 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 Energy Services will offset losses from the drop in Energy Services' long position.| Cohen Steers vs. Inverse Government Long | Cohen Steers vs. Intermediate Government Bond | Cohen Steers vs. Us Government Securities | Cohen Steers vs. Hsbc Government Money |
| Energy Services vs. Energy Fund Investor | Energy Services vs. Basic Materials Fund | Energy Services vs. Electronics Fund Investor | Energy Services vs. Health Care Fund |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |