Correlation Between Amg Managers and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Amg Managers 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 Amg Managers and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Managers Centersquare and Cohen Steers Prefrd, you can compare the effects of market volatilities on Amg Managers 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 Amg Managers with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Managers and Cohen Steers.
Diversification Opportunities for Amg Managers and Cohen Steers
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amg and Cohen is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Amg Managers Centersquare and Cohen Steers Prefrd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Prefrd and Amg Managers 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 Amg Managers Centersquare 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 Prefrd has no effect on the direction of Amg Managers i.e., Amg Managers and Cohen Steers go up and down completely randomly.
Pair Corralation between Amg Managers and Cohen Steers
Assuming the 90 days horizon Amg Managers Centersquare is expected to generate 6.56 times more return on investment than Cohen Steers. However, Amg Managers is 6.56 times more volatile than Cohen Steers Prefrd. It trades about 0.22 of its potential returns per unit of risk. Cohen Steers Prefrd is currently generating about -0.06 per unit of risk. If you would invest 1,194 in Amg Managers Centersquare on September 3, 2024 and sell it today you would earn a total of 46.00 from holding Amg Managers Centersquare or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Managers Centersquare vs. Cohen Steers Prefrd
Performance |
| Timeline |
| Amg Managers Centersquare |
| Cohen Steers Prefrd |
Amg Managers and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Managers and Cohen Steers
The main advantage of trading using opposite Amg Managers and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Managers 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.| Amg Managers vs. Deutsche Health And | Amg Managers vs. Fidelity Advisor Health | Amg Managers vs. Blackrock Health Sciences | Amg Managers vs. Invesco Global Health |
| Cohen Steers vs. Cohen Steers Prfrd | Cohen Steers vs. Cohen Steers Preferred | Cohen Steers vs. Preferred Securities Fund | Cohen Steers vs. Aquagold International |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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