Correlation Between Preferred Securities and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Preferred Securities 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 Preferred Securities and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Preferred Securities Fund and Cohen Steers Low, you can compare the effects of market volatilities on Preferred Securities 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 Preferred Securities with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Preferred Securities and Cohen Steers.
Diversification Opportunities for Preferred Securities and Cohen Steers
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Preferred and Cohen is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Preferred Securities Fund 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 Preferred Securities 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 Preferred Securities 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 Low has no effect on the direction of Preferred Securities i.e., Preferred Securities and Cohen Steers go up and down completely randomly.
Pair Corralation between Preferred Securities and Cohen Steers
Assuming the 90 days horizon Preferred Securities Fund is expected to generate 1.43 times more return on investment than Cohen Steers. However, Preferred Securities is 1.43 times more volatile than Cohen Steers Low. It trades about 0.17 of its potential returns per unit of risk. Cohen Steers Low is currently generating about 0.24 per unit of risk. If you would invest 924.00 in Preferred Securities Fund on November 30, 2024 and sell it today you would earn a total of 10.00 from holding Preferred Securities Fund or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Preferred Securities Fund vs. Cohen Steers Low
Performance |
| Timeline |
| Preferred Securities |
| Cohen Steers Low |
Preferred Securities and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Preferred Securities and Cohen Steers
The main advantage of trading using opposite Preferred Securities and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Preferred Securities 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.| Preferred Securities vs. Hartford Schroders Emerging | Preferred Securities vs. Pimco Emerging Markets | Preferred Securities vs. Commodities Strategy Fund | Preferred Securities vs. Investec Emerging Markets |
| Cohen Steers vs. Salient Mlp Energy | Cohen Steers vs. World Energy Fund | Cohen Steers vs. Gamco Natural Resources | Cohen Steers vs. Short Oil Gas |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |