Correlation Between Onex Corp and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Onex Corp 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 Onex Corp and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onex Corp and Cohen Steers, you can compare the effects of market volatilities on Onex Corp 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 Onex Corp with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onex Corp and Cohen Steers.
Diversification Opportunities for Onex Corp and Cohen Steers
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Onex and Cohen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Onex Corp and Cohen Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers and Onex Corp 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 Onex Corp 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 has no effect on the direction of Onex Corp i.e., Onex Corp and Cohen Steers go up and down completely randomly.
Pair Corralation between Onex Corp and Cohen Steers
Assuming the 90 days horizon Onex Corp is expected to generate 1.0 times more return on investment than Cohen Steers. However, Onex Corp is 1.0 times more volatile than Cohen Steers. It trades about 0.07 of its potential returns per unit of risk. Cohen Steers is currently generating about 0.06 per unit of risk. If you would invest 4,727 in Onex Corp on August 29, 2024 and sell it today you would earn a total of 3,370 from holding Onex Corp or generate 71.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Onex Corp vs. Cohen Steers
Performance |
| Timeline |
| Onex Corp |
| Cohen Steers |
Onex Corp and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onex Corp and Cohen Steers
The main advantage of trading using opposite Onex Corp and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onex Corp 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.| Onex Corp vs. Cohen Steers | Onex Corp vs. Artisan Partners Asset | Onex Corp vs. Principal Financial Group | Onex Corp vs. Invesco Plc |
| Cohen Steers vs. Federated Premier Municipal | Cohen Steers vs. Blackrock Muniyield | Cohen Steers vs. Diamond Hill Investment | Cohen Steers vs. NXG NextGen Infrastructure |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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