Correlation Between Pace High and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Pace High 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 Pace High and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pace High Yield and Cohen Steers Low, you can compare the effects of market volatilities on Pace High 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 Pace High with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace High and Cohen Steers.
Diversification Opportunities for Pace High and Cohen Steers
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pace and Cohen is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Pace High Yield and Cohen Steers Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Low and Pace High 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 Pace High Yield 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 Low has no effect on the direction of Pace High i.e., Pace High and Cohen Steers go up and down completely randomly.
Pair Corralation between Pace High and Cohen Steers
Assuming the 90 days horizon Pace High Yield is expected to generate 1.16 times more return on investment than Cohen Steers. However, Pace High is 1.16 times more volatile than Cohen Steers Low. It trades about 0.18 of its potential returns per unit of risk. Cohen Steers Low is currently generating about 0.15 per unit of risk. If you would invest 734.00 in Pace High Yield on September 14, 2024 and sell it today you would earn a total of 170.00 from holding Pace High Yield or generate 23.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pace High Yield vs. Cohen Steers Low
Performance |
| Timeline |
| Pace High Yield |
| Cohen Steers Low |
Pace High and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pace High and Cohen Steers
The main advantage of trading using opposite Pace High and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pace High 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.| Pace High vs. Pace Smallmedium Value | Pace High vs. Pace International Equity | Pace High vs. Pace International Equity | Pace High vs. Ubs Allocation Fund |
| Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Preferred |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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