Correlation Between Cohen Steers and Great Elm
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Great Elm 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 Great Elm 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 Great Elm Group, you can compare the effects of market volatilities on Cohen Steers and Great Elm 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 Great Elm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Great Elm.
Diversification Opportunities for Cohen Steers and Great Elm
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cohen and Great is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Tax Advantaged and Great Elm Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Elm Group 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 Great Elm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Elm Group has no effect on the direction of Cohen Steers i.e., Cohen Steers and Great Elm go up and down completely randomly.
Pair Corralation between Cohen Steers and Great Elm
Considering the 90-day investment horizon Cohen Steers is expected to generate 1.6 times less return on investment than Great Elm. But when comparing it to its historical volatility, Cohen Steers Tax Advantaged is 1.54 times less risky than Great Elm. It trades about 0.09 of its potential returns per unit of risk. Great Elm Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,145 in Great Elm Group on August 30, 2024 and sell it today you would earn a total of 252.00 from holding Great Elm Group or generate 11.75% return on investment 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. Great Elm Group
Performance |
| Timeline |
| Cohen Steers Tax |
| Great Elm Group |
Cohen Steers and Great Elm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Great Elm
The main advantage of trading using opposite Cohen Steers and Great Elm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Great Elm 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 Great Elm will offset losses from the drop in Great Elm's long position.| Cohen Steers vs. ClimateRock Class A | Cohen Steers vs. CF Acquisition VII | Cohen Steers vs. DP Cap Acquisition |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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