Correlation Between Pender Real and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Pender Real 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 Pender Real and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pender Real Estate and Cohen Steers Real, you can compare the effects of market volatilities on Pender Real 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 Pender Real with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pender Real and Cohen Steers.
Diversification Opportunities for Pender Real and Cohen Steers
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pender and Cohen is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Pender Real Estate and Cohen Steers Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Real and Pender Real 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 Pender Real Estate 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 Real has no effect on the direction of Pender Real i.e., Pender Real and Cohen Steers go up and down completely randomly.
Pair Corralation between Pender Real and Cohen Steers
Assuming the 90 days horizon Pender Real is expected to generate 1.32 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Pender Real Estate is 7.69 times less risky than Cohen Steers. It trades about 0.26 of its potential returns per unit of risk. Cohen Steers Real is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,488 in Cohen Steers Real on October 30, 2024 and sell it today you would earn a total of 160.00 from holding Cohen Steers Real or generate 10.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pender Real Estate vs. Cohen Steers Real
Performance |
| Timeline |
| Pender Real Estate |
| Cohen Steers Real |
Pender Real and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pender Real and Cohen Steers
The main advantage of trading using opposite Pender Real and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pender Real 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.| Pender Real vs. Amg River Road | Pender Real vs. Heartland Value Plus | Pender Real vs. Mutual Of America | Pender Real vs. Walden Smid Cap |
| Cohen Steers vs. Rbc Global Opportunities | Cohen Steers vs. Legg Mason Global | Cohen Steers vs. Qs Global Equity | Cohen Steers vs. Rbc Global Equity |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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