Correlation Between NYSE Composite and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Cohen Steers Intl, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Cohen Steers.
Diversification Opportunities for NYSE Composite and Cohen Steers
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Cohen is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Cohen Steers Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Intl and NYSE Composite 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 NYSE Composite 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 Intl has no effect on the direction of NYSE Composite i.e., NYSE Composite and Cohen Steers go up and down completely randomly.
Pair Corralation between NYSE Composite and Cohen Steers
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.78 times more return on investment than Cohen Steers. However, NYSE Composite is 1.28 times less risky than Cohen Steers. It trades about 0.13 of its potential returns per unit of risk. Cohen Steers Intl is currently generating about -0.01 per unit of risk. If you would invest 1,796,384 in NYSE Composite on September 3, 2024 and sell it today you would earn a total of 230,820 from holding NYSE Composite or generate 12.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Cohen Steers Intl
Performance |
| Timeline |
NYSE Composite and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Cohen Steers Intl
Pair trading matchups for Cohen Steers
Pair Trading with NYSE Composite and Cohen Steers
The main advantage of trading using opposite NYSE Composite and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| Cohen Steers vs. Mid Cap Growth | Cohen Steers vs. Rational Defensive Growth | Cohen Steers vs. Small Pany Growth | Cohen Steers vs. Champlain Mid Cap |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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