Correlation Between Cohen Steers and MSCI ACWI
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and MSCI ACWI 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 MSCI ACWI 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 MSCI ACWI exAUCONSUMER, you can compare the effects of market volatilities on Cohen Steers and MSCI ACWI 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 MSCI ACWI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and MSCI ACWI.
Diversification Opportunities for Cohen Steers and MSCI ACWI
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cohen and MSCI is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Tax Advantaged and MSCI ACWI exAUCONSUMER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSCI ACWI exAUCONSUMER 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 MSCI ACWI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSCI ACWI exAUCONSUMER has no effect on the direction of Cohen Steers i.e., Cohen Steers and MSCI ACWI go up and down completely randomly.
Pair Corralation between Cohen Steers and MSCI ACWI
Considering the 90-day investment horizon Cohen Steers is expected to generate 61.62 times less return on investment than MSCI ACWI. In addition to that, Cohen Steers is 3.13 times more volatile than MSCI ACWI exAUCONSUMER. It trades about 0.0 of its total potential returns per unit of risk. MSCI ACWI exAUCONSUMER is currently generating about 0.2 per unit of volatility. If you would invest 2,473 in MSCI ACWI exAUCONSUMER on August 30, 2024 and sell it today you would earn a total of 28.00 from holding MSCI ACWI exAUCONSUMER or generate 1.13% 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. MSCI ACWI exAUCONSUMER
Performance |
| Timeline |
| Cohen Steers Tax |
| MSCI ACWI exAUCONSUMER |
Cohen Steers and MSCI ACWI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and MSCI ACWI
The main advantage of trading using opposite Cohen Steers and MSCI ACWI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, MSCI ACWI 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 MSCI ACWI will offset losses from the drop in MSCI ACWI's long position.| Cohen Steers vs. ClimateRock Class A | Cohen Steers vs. CF Acquisition VII | Cohen Steers vs. DP Cap Acquisition |
| MSCI ACWI vs. Brightsphere Investment Group | MSCI ACWI vs. Franklin Templeton Limited | MSCI ACWI vs. Blackrock Muni Intermediate | MSCI ACWI vs. Munivest Fund |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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