Correlation Between Cohen Steers and Strategic Allocation
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Strategic Allocation 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 Strategic Allocation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Real and Strategic Allocation Moderate, you can compare the effects of market volatilities on Cohen Steers and Strategic Allocation 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 Strategic Allocation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Strategic Allocation.
Diversification Opportunities for Cohen Steers and Strategic Allocation
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cohen and Strategic is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Real and Strategic Allocation Moderate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Allocation 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 Real are associated (or correlated) with Strategic Allocation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Allocation has no effect on the direction of Cohen Steers i.e., Cohen Steers and Strategic Allocation go up and down completely randomly.
Pair Corralation between Cohen Steers and Strategic Allocation
Assuming the 90 days horizon Cohen Steers is expected to generate 2.38 times less return on investment than Strategic Allocation. In addition to that, Cohen Steers is 1.15 times more volatile than Strategic Allocation Moderate. It trades about 0.06 of its total potential returns per unit of risk. Strategic Allocation Moderate is currently generating about 0.16 per unit of volatility. If you would invest 678.00 in Strategic Allocation Moderate on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Strategic Allocation Moderate or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Real vs. Strategic Allocation Moderate
Performance |
| Timeline |
| Cohen Steers Real |
| Strategic Allocation |
Cohen Steers and Strategic Allocation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Strategic Allocation
The main advantage of trading using opposite Cohen Steers and Strategic Allocation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Strategic Allocation 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 Strategic Allocation will offset losses from the drop in Strategic Allocation's long position.| Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Mlp | Cohen Steers vs. Cohen Steers Mlp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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