Correlation Between Oakmark International and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Oakmark International 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 Oakmark International and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakmark International Fund and Cohen Steers Realty, you can compare the effects of market volatilities on Oakmark International 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 Oakmark International with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark International and Cohen Steers.
Diversification Opportunities for Oakmark International and Cohen Steers
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oakmark and Cohen is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark International Fund and Cohen Steers Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Realty and Oakmark International 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 Oakmark International Fund 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 Realty has no effect on the direction of Oakmark International i.e., Oakmark International and Cohen Steers go up and down completely randomly.
Pair Corralation between Oakmark International and Cohen Steers
Assuming the 90 days horizon Oakmark International is expected to generate 1.73 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Oakmark International Fund is 1.15 times less risky than Cohen Steers. It trades about 0.02 of its potential returns per unit of risk. Cohen Steers Realty is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 6,028 in Cohen Steers Realty on November 5, 2024 and sell it today you would earn a total of 619.00 from holding Cohen Steers Realty or generate 10.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oakmark International Fund vs. Cohen Steers Realty
Performance |
| Timeline |
| Oakmark International |
| Cohen Steers Realty |
Oakmark International and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark International and Cohen Steers
The main advantage of trading using opposite Oakmark International and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark International 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.| Oakmark International vs. Oakmark Fund Investor | Oakmark International vs. Oakmark Select Fund | Oakmark International vs. Oakmark International Small | Oakmark International vs. Oakmark Global Fund |
| Cohen Steers vs. Commodityrealreturn Strategy Fund | Cohen Steers vs. Oakmark International Fund | Cohen Steers vs. Third Avenue Real | Cohen Steers vs. Large Cap 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |