Correlation Between Cohen Steers and Dunham Corporate/govern
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Dunham Corporate/govern 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 Dunham Corporate/govern 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 Dunham Porategovernment Bond, you can compare the effects of market volatilities on Cohen Steers and Dunham Corporate/govern 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 Dunham Corporate/govern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Dunham Corporate/govern.
Diversification Opportunities for Cohen Steers and Dunham Corporate/govern
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cohen and Dunham is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Real and Dunham Porategovernment Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Porategovernment 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 Dunham Corporate/govern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Porategovernment has no effect on the direction of Cohen Steers i.e., Cohen Steers and Dunham Corporate/govern go up and down completely randomly.
Pair Corralation between Cohen Steers and Dunham Corporate/govern
Assuming the 90 days horizon Cohen Steers Real is expected to generate 1.77 times more return on investment than Dunham Corporate/govern. However, Cohen Steers is 1.77 times more volatile than Dunham Porategovernment Bond. It trades about 0.07 of its potential returns per unit of risk. Dunham Porategovernment Bond is currently generating about 0.09 per unit of risk. If you would invest 997.00 in Cohen Steers Real on September 3, 2024 and sell it today you would earn a total of 63.00 from holding Cohen Steers Real or generate 6.32% 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. Dunham Porategovernment Bond
Performance |
| Timeline |
| Cohen Steers Real |
| Dunham Porategovernment |
Cohen Steers and Dunham Corporate/govern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Dunham Corporate/govern
The main advantage of trading using opposite Cohen Steers and Dunham Corporate/govern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Dunham Corporate/govern 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 Dunham Corporate/govern will offset losses from the drop in Dunham Corporate/govern's long position.| Cohen Steers vs. Amg Managers Centersquare | Cohen Steers vs. Columbia Real Estate | Cohen Steers vs. Virtus Real Estate | Cohen Steers vs. Deutsche Real Estate |
| Dunham Corporate/govern vs. Ab Global Risk | Dunham Corporate/govern vs. Legg Mason Global | Dunham Corporate/govern vs. Artisan Global Unconstrained | Dunham Corporate/govern vs. Scharf Global Opportunity |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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