Correlation Between Cohen Steers and PowerUp Acquisition
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and PowerUp Acquisition 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 PowerUp Acquisition 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 PowerUp Acquisition Corp, you can compare the effects of market volatilities on Cohen Steers and PowerUp Acquisition 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 PowerUp Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and PowerUp Acquisition.
Diversification Opportunities for Cohen Steers and PowerUp Acquisition
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and PowerUp is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Tax Advantaged and PowerUp Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerUp Acquisition Corp 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 PowerUp Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerUp Acquisition Corp has no effect on the direction of Cohen Steers i.e., Cohen Steers and PowerUp Acquisition go up and down completely randomly.
Pair Corralation between Cohen Steers and PowerUp Acquisition
Considering the 90-day investment horizon Cohen Steers Tax Advantaged is expected to generate 1.89 times more return on investment than PowerUp Acquisition. However, Cohen Steers is 1.89 times more volatile than PowerUp Acquisition Corp. It trades about 0.03 of its potential returns per unit of risk. PowerUp Acquisition Corp is currently generating about 0.06 per unit of risk. If you would invest 2,004 in Cohen Steers Tax Advantaged on August 31, 2024 and sell it today you would earn a total of 11.00 from holding Cohen Steers Tax Advantaged or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cohen Steers Tax Advantaged vs. PowerUp Acquisition Corp
Performance |
| Timeline |
| Cohen Steers Tax |
| PowerUp Acquisition Corp |
Cohen Steers and PowerUp Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and PowerUp Acquisition
The main advantage of trading using opposite Cohen Steers and PowerUp Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, PowerUp Acquisition 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 PowerUp Acquisition will offset losses from the drop in PowerUp Acquisition'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 |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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