Correlation Between Puyi and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Puyi and Cohen Steers 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 Puyi and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puyi Inc ADR and Cohen Steers Qualityome, you can compare the effects of market volatilities on Puyi and Cohen Steers 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 Puyi with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puyi and Cohen Steers.
Diversification Opportunities for Puyi and Cohen Steers
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Puyi and Cohen is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Puyi Inc ADR and Cohen Steers Qualityome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Qualityome and Puyi 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 Puyi Inc ADR are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Qualityome has no effect on the direction of Puyi i.e., Puyi and Cohen Steers go up and down completely randomly.
Pair Corralation between Puyi and Cohen Steers
Given the investment horizon of 90 days Puyi is expected to generate 1.13 times less return on investment than Cohen Steers. In addition to that, Puyi is 3.89 times more volatile than Cohen Steers Qualityome. It trades about 0.01 of its total potential returns per unit of risk. Cohen Steers Qualityome is currently generating about 0.05 per unit of volatility. If you would invest 1,071 in Cohen Steers Qualityome on August 31, 2024 and sell it today you would earn a total of 322.00 from holding Cohen Steers Qualityome or generate 30.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 28.51% |
| Values | Daily Returns |
Puyi Inc ADR vs. Cohen Steers Qualityome
Performance |
| Timeline |
| Puyi Inc ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cohen Steers Qualityome |
Puyi and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puyi and Cohen Steers
The main advantage of trading using opposite Puyi and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puyi position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Puyi vs. Eaton Vance National | Puyi vs. Invesco High Income | Puyi vs. Blackrock Muniholdings Ny | Puyi vs. Nuveen California Select |
| Cohen Steers vs. MFS Investment Grade | Cohen Steers vs. Eaton Vance Municipal | Cohen Steers vs. DTF Tax Free | Cohen Steers vs. HUMANA INC |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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