Correlation Between Cohen Steers and ClimateRock
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and ClimateRock 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 ClimateRock 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 ClimateRock Class A, you can compare the effects of market volatilities on Cohen Steers and ClimateRock 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 ClimateRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and ClimateRock.
Diversification Opportunities for Cohen Steers and ClimateRock
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cohen and ClimateRock is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Tax Advantaged and ClimateRock Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClimateRock Class 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 ClimateRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClimateRock Class has no effect on the direction of Cohen Steers i.e., Cohen Steers and ClimateRock go up and down completely randomly.
Pair Corralation between Cohen Steers and ClimateRock
Considering the 90-day investment horizon Cohen Steers Tax Advantaged is expected to generate 2.27 times more return on investment than ClimateRock. However, Cohen Steers is 2.27 times more volatile than ClimateRock Class A. It trades about 0.1 of its potential returns per unit of risk. ClimateRock Class A is currently generating about 0.07 per unit of risk. If you would invest 1,529 in Cohen Steers Tax Advantaged on September 2, 2024 and sell it today you would earn a total of 486.00 from holding Cohen Steers Tax Advantaged or generate 31.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Tax Advantaged vs. ClimateRock Class A
Performance |
| Timeline |
| Cohen Steers Tax |
| ClimateRock Class |
Cohen Steers and ClimateRock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and ClimateRock
The main advantage of trading using opposite Cohen Steers and ClimateRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, ClimateRock 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 ClimateRock will offset losses from the drop in ClimateRock's long position.| Cohen Steers vs. Blackrock Muni Intermediate | Cohen Steers vs. Nuveen Dynamic Municipal | Cohen Steers vs. Blackrock Muniyield Quality | Cohen Steers vs. DWS Municipal Income |
| ClimateRock vs. AlphaVest Acquisition Corp | ClimateRock vs. Golden Star Acquisition | ClimateRock vs. Alpha One | ClimateRock vs. Manaris Corp |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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