Correlation Between Barings Participation and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Barings Participation and Cohen Steers 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 Barings Participation and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Participation Investors and Cohen Steers Reit, you can compare the effects of market volatilities on Barings Participation and Cohen Steers 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 Barings Participation with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Participation and Cohen Steers.
Diversification Opportunities for Barings Participation and Cohen Steers
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Barings and Cohen is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Barings Participation Investor and Cohen Steers Reit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Reit and Barings Participation 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 Barings Participation Investors are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Reit has no effect on the direction of Barings Participation i.e., Barings Participation and Cohen Steers go up and down completely randomly.
Pair Corralation between Barings Participation and Cohen Steers
Considering the 90-day investment horizon Barings Participation Investors is expected to under-perform the Cohen Steers. But the stock apears to be less risky and, when comparing its historical volatility, Barings Participation Investors is 1.7 times less risky than Cohen Steers. The stock trades about -0.15 of its potential returns per unit of risk. The Cohen Steers Reit is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 2,324 in Cohen Steers Reit on August 28, 2024 and sell it today you would lose (37.00) from holding Cohen Steers Reit or give up 1.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Barings Participation Investor vs. Cohen Steers Reit
Performance |
| Timeline |
| Barings Participation |
| Cohen Steers Reit |
Barings Participation and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Participation and Cohen Steers
The main advantage of trading using opposite Barings Participation and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Participation position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Barings Participation vs. Allianzgi Equity Convertible | Barings Participation vs. Cohen Steers Total | Barings Participation vs. Blackrock Floating Rate | Barings Participation vs. MFS Investment Grade |
| Cohen Steers vs. Cohen And Steers | Cohen Steers vs. Cohen Steers Total | Cohen Steers vs. Reaves Utility If | Cohen Steers vs. BlackRock Science Tech |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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