Correlation Between Cref Inflation-linked and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Cref Inflation-linked 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 Cref Inflation-linked and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Inflation Linked Bond and Cohen Steers Prfrd, you can compare the effects of market volatilities on Cref Inflation-linked 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 Cref Inflation-linked with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Inflation-linked and Cohen Steers.
Diversification Opportunities for Cref Inflation-linked and Cohen Steers
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between CREF and Cohen is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cref Inflation Linked Bond and Cohen Steers Prfrd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Prfrd and Cref Inflation-linked 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 Cref Inflation Linked Bond 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 Prfrd has no effect on the direction of Cref Inflation-linked i.e., Cref Inflation-linked and Cohen Steers go up and down completely randomly.
Pair Corralation between Cref Inflation-linked and Cohen Steers
Assuming the 90 days trading horizon Cref Inflation-linked is expected to generate 1.51 times less return on investment than Cohen Steers. In addition to that, Cref Inflation-linked is 1.18 times more volatile than Cohen Steers Prfrd. It trades about 0.14 of its total potential returns per unit of risk. Cohen Steers Prfrd is currently generating about 0.26 per unit of volatility. If you would invest 1,167 in Cohen Steers Prfrd on September 3, 2024 and sell it today you would earn a total of 72.00 from holding Cohen Steers Prfrd or generate 6.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cref Inflation Linked Bond vs. Cohen Steers Prfrd
Performance |
| Timeline |
| Cref Inflation Linked |
| Cohen Steers Prfrd |
Cref Inflation-linked and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Inflation-linked and Cohen Steers
The main advantage of trading using opposite Cref Inflation-linked and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Inflation-linked 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.The idea behind Cref Inflation Linked Bond and Cohen Steers Prfrd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Cohen Steers vs. Virtus Dfa 2040 | Cohen Steers vs. T Rowe Price | Cohen Steers vs. T Rowe Price | Cohen Steers vs. Legg Mason Partners |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |