Correlation Between Barings Participation and Cohen
Can any of the company-specific risk be diversified away by investing in both Barings Participation and Cohen 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 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 And Steers, you can compare the effects of market volatilities on Barings Participation and Cohen 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Participation and Cohen.
Diversification Opportunities for Barings Participation and Cohen
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barings and Cohen is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Barings Participation Investor and Cohen And Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen And Steers 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen And Steers has no effect on the direction of Barings Participation i.e., Barings Participation and Cohen go up and down completely randomly.
Pair Corralation between Barings Participation and Cohen
Considering the 90-day investment horizon Barings Participation Investors is expected to under-perform the Cohen. But the stock apears to be less risky and, when comparing its historical volatility, Barings Participation Investors is 1.0 times less risky than Cohen. The stock trades about -0.14 of its potential returns per unit of risk. The Cohen And Steers is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,530 in Cohen And Steers on August 24, 2024 and sell it today you would earn a total of 48.00 from holding Cohen And Steers or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Participation Investor vs. Cohen And Steers
Performance |
| Timeline |
| Barings Participation |
| Cohen And Steers |
Barings Participation and Cohen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Participation and Cohen
The main advantage of trading using opposite Barings Participation and Cohen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Participation position performs unexpectedly, Cohen 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 will offset losses from the drop in Cohen's long position.| Barings Participation vs. Invesco High Income | Barings Participation vs. Blackrock Muniholdings Ny | Barings Participation vs. MFS Investment Grade | Barings Participation vs. Federated Premier Municipal |
| Cohen vs. MFS Investment Grade | Cohen vs. Eaton Vance National | Cohen vs. Blackrock Muniyield Quality | Cohen vs. Munivest 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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