Correlation Between Cohen Steers and Cohen
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Cohen 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 Cohen 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 Cohen and Steers, you can compare the effects of market volatilities on Cohen Steers and Cohen 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 Cohen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Cohen.
Diversification Opportunities for Cohen Steers and Cohen
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and Cohen is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Total and Cohen and Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen and Steers 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 Cohen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen and Steers has no effect on the direction of Cohen Steers i.e., Cohen Steers and Cohen go up and down completely randomly.
Pair Corralation between Cohen Steers and Cohen
Considering the 90-day investment horizon Cohen Steers Total is expected to generate 1.53 times more return on investment than Cohen. However, Cohen Steers is 1.53 times more volatile than Cohen and Steers. It trades about 0.31 of its potential returns per unit of risk. Cohen and Steers is currently generating about 0.28 per unit of risk. If you would invest 1,155 in Cohen Steers Total on November 9, 2024 and sell it today you would earn a total of 64.00 from holding Cohen Steers Total or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Total vs. Cohen and Steers
Performance |
| Timeline |
| Cohen Steers Total |
| Cohen and Steers |
Cohen Steers and Cohen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Cohen
The main advantage of trading using opposite Cohen Steers and Cohen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Cohen 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 will offset losses from the drop in Cohen's long position.| Cohen Steers vs. Cohen Steers Reit | Cohen Steers vs. Cohen And Steers | Cohen Steers vs. Reaves Utility If | Cohen Steers vs. BlackRock Science Tech |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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