Correlation Between International Growth and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both International Growth 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 International Growth and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Growth And and Cohen Steers Global, you can compare the effects of market volatilities on International Growth 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 International Growth with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Growth and Cohen Steers.
Diversification Opportunities for International Growth and Cohen Steers
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between International and Cohen is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding International Growth And and Cohen Steers Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Global and International Growth 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 International Growth And 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 Global has no effect on the direction of International Growth i.e., International Growth and Cohen Steers go up and down completely randomly.
Pair Corralation between International Growth and Cohen Steers
Assuming the 90 days horizon International Growth And is expected to under-perform the Cohen Steers. But the mutual fund apears to be less risky and, when comparing its historical volatility, International Growth And is 1.15 times less risky than Cohen Steers. The mutual fund trades about -0.2 of its potential returns per unit of risk. The Cohen Steers Global is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 5,615 in Cohen Steers Global on August 28, 2024 and sell it today you would lose (50.00) from holding Cohen Steers Global or give up 0.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
International Growth And vs. Cohen Steers Global
Performance |
| Timeline |
| International Growth And |
| Cohen Steers Global |
International Growth and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Growth and Cohen Steers
The main advantage of trading using opposite International Growth and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Growth 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.| International Growth vs. Income Fund Of | International Growth vs. New World Fund | International Growth vs. American Mutual Fund | International Growth vs. American Mutual Fund |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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