Correlation Between Cohen and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Cohen 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 Cohen and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen and Steers and Cohen Steers Reit, you can compare the effects of market volatilities on Cohen 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 Cohen with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen and Cohen Steers.
Diversification Opportunities for Cohen and Cohen Steers
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and Cohen is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cohen and Steers and Cohen Steers Reit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Reit and Cohen 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 Cohen and Steers 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 Reit has no effect on the direction of Cohen i.e., Cohen and Cohen Steers go up and down completely randomly.
Pair Corralation between Cohen and Cohen Steers
Considering the 90-day investment horizon Cohen is expected to generate 1.11 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Cohen and Steers is 1.41 times less risky than Cohen Steers. It trades about 0.06 of its potential returns per unit of risk. Cohen Steers Reit is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,749 in Cohen Steers Reit on November 1, 2024 and sell it today you would earn a total of 423.00 from holding Cohen Steers Reit or generate 24.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen and Steers vs. Cohen Steers Reit
Performance |
| Timeline |
| Cohen and Steers |
| Cohen Steers Reit |
Cohen and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen and Cohen Steers
The main advantage of trading using opposite Cohen and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen 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.| Cohen vs. RiverNorth Flexible Municipalome | Cohen vs. Blackrock Muniholdings Ny | Cohen vs. MFS Investment Grade | Cohen vs. Eaton Vance National |
| Cohen Steers vs. Cohen And Steers | Cohen Steers vs. Cohen Steers Total | Cohen Steers vs. Reaves Utility If | Cohen Steers vs. BlackRock Science Tech |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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