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 Tax Advantaged, 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
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and Cohen is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Cohen Steers Tax Advantaged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Tax 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 Tax 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 0.79 times more return on investment than Cohen Steers. However, NYSE Composite is 1.27 times less risky than Cohen Steers. It trades about 0.3 of its potential returns per unit of risk. Cohen Steers Tax Advantaged is currently generating about 0.03 per unit of risk. If you would invest 1,941,627 in NYSE Composite on August 31, 2024 and sell it today you would earn a total of 85,577 from holding NYSE Composite or generate 4.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Cohen Steers Tax Advantaged
Performance |
| Timeline |
NYSE Composite and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Cohen Steers Tax Advantaged
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. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| Cohen Steers vs. Blackrock Muni Intermediate | Cohen Steers vs. Nuveen Dynamic Municipal | Cohen Steers vs. Blackrock Muniyield Quality | Cohen Steers vs. DWS Municipal Income |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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