Correlation Between Cohen Steers and Aurora Innovation
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Aurora Innovation 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 Steers and Aurora Innovation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Tax Advantaged and Aurora Innovation, you can compare the effects of market volatilities on Cohen Steers and Aurora Innovation 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 Steers with a short position of Aurora Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Aurora Innovation.
Diversification Opportunities for Cohen Steers and Aurora Innovation
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cohen and Aurora is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Tax Advantaged and Aurora Innovation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Innovation and Cohen Steers 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 Steers Tax Advantaged are associated (or correlated) with Aurora Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Innovation has no effect on the direction of Cohen Steers i.e., Cohen Steers and Aurora Innovation go up and down completely randomly.
Pair Corralation between Cohen Steers and Aurora Innovation
Considering the 90-day investment horizon Cohen Steers Tax Advantaged is expected to under-perform the Aurora Innovation. But the stock apears to be less risky and, when comparing its historical volatility, Cohen Steers Tax Advantaged is 18.12 times less risky than Aurora Innovation. The stock trades about -0.07 of its potential returns per unit of risk. The Aurora Innovation is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 116.00 in Aurora Innovation on August 28, 2024 and sell it today you would lose (22.00) from holding Aurora Innovation or give up 18.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Tax Advantaged vs. Aurora Innovation
Performance |
| Timeline |
| Cohen Steers Tax |
| Aurora Innovation |
Cohen Steers and Aurora Innovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Aurora Innovation
The main advantage of trading using opposite Cohen Steers and Aurora Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Aurora Innovation 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 Aurora Innovation will offset losses from the drop in Aurora Innovation's long position.| Cohen Steers vs. Aurora Innovation | Cohen Steers vs. HUMANA INC | Cohen Steers vs. Aquagold International | Cohen Steers vs. Barloworld Ltd ADR |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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