Correlation Between Cohen Steers and Nuveen California
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Nuveen California 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 Nuveen California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Total and Nuveen California Select, you can compare the effects of market volatilities on Cohen Steers and Nuveen California 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 Nuveen California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Nuveen California.
Diversification Opportunities for Cohen Steers and Nuveen California
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cohen and Nuveen is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Total and Nuveen California Select in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen California Select 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 Total are associated (or correlated) with Nuveen California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen California Select has no effect on the direction of Cohen Steers i.e., Cohen Steers and Nuveen California go up and down completely randomly.
Pair Corralation between Cohen Steers and Nuveen California
Considering the 90-day investment horizon Cohen Steers Total is expected to generate 1.3 times more return on investment than Nuveen California. However, Cohen Steers is 1.3 times more volatile than Nuveen California Select. It trades about 0.04 of its potential returns per unit of risk. Nuveen California Select is currently generating about 0.02 per unit of risk. If you would invest 1,057 in Cohen Steers Total on September 3, 2024 and sell it today you would earn a total of 259.00 from holding Cohen Steers Total or generate 24.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Total vs. Nuveen California Select
Performance |
| Timeline |
| Cohen Steers Total |
| Nuveen California Select |
Cohen Steers and Nuveen California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Nuveen California
The main advantage of trading using opposite Cohen Steers and Nuveen California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Nuveen California 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 Nuveen California will offset losses from the drop in Nuveen California's long position.| Cohen Steers vs. Tekla Healthcare Investors | Cohen Steers vs. Tekla Life Sciences | Cohen Steers vs. Cohen Steers Reit | Cohen Steers vs. XAI Octagon Floating |
| Nuveen California vs. Eaton Vance National | Nuveen California vs. Invesco High Income | Nuveen California vs. Blackrock Muniholdings Ny | Nuveen California vs. MFS Investment Grade |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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