Correlation Between Ab Small and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Ab Small 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 Ab Small and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Small Cap and Cohen Steers Low, you can compare the effects of market volatilities on Ab Small 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 Ab Small with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Small and Cohen Steers.
Diversification Opportunities for Ab Small and Cohen Steers
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between QUAIX and Cohen is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ab Small Cap and Cohen Steers Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Low and Ab Small 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 Ab Small Cap 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 Low has no effect on the direction of Ab Small i.e., Ab Small and Cohen Steers go up and down completely randomly.
Pair Corralation between Ab Small and Cohen Steers
Assuming the 90 days horizon Ab Small Cap is expected to generate 14.99 times more return on investment than Cohen Steers. However, Ab Small is 14.99 times more volatile than Cohen Steers Low. It trades about 0.2 of its potential returns per unit of risk. Cohen Steers Low is currently generating about 0.0 per unit of risk. If you would invest 7,352 in Ab Small Cap on August 31, 2024 and sell it today you would earn a total of 515.00 from holding Ab Small Cap or generate 7.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Small Cap vs. Cohen Steers Low
Performance |
| Timeline |
| Ab Small Cap |
| Cohen Steers Low |
Ab Small and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Small and Cohen Steers
The main advantage of trading using opposite Ab Small and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Small 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.| Ab Small vs. Pgim Jennison Diversified | Ab Small vs. Oppenheimer International Diversified | Ab Small vs. Jhancock Diversified Macro | Ab Small vs. Sentinel Small Pany |
| Cohen Steers vs. Vanguard Growth And | Cohen Steers vs. Touchstone Small Cap | Cohen Steers vs. Chase Growth Fund | Cohen Steers vs. Ab Small Cap |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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