Correlation Between Cohen Steers and Western Asset
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Western Asset 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 Western Asset 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 Western Asset Global, you can compare the effects of market volatilities on Cohen Steers and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Western Asset.
Diversification Opportunities for Cohen Steers and Western Asset
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cohen and Western is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Real and Western Asset Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Global 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Global has no effect on the direction of Cohen Steers i.e., Cohen Steers and Western Asset go up and down completely randomly.
Pair Corralation between Cohen Steers and Western Asset
Given the investment horizon of 90 days Cohen Steers Real is expected to under-perform the Western Asset. In addition to that, Cohen Steers is 1.72 times more volatile than Western Asset Global. It trades about -0.08 of its total potential returns per unit of risk. Western Asset Global is currently generating about 0.05 per unit of volatility. If you would invest 662.00 in Western Asset Global on August 24, 2024 and sell it today you would earn a total of 5.00 from holding Western Asset Global or generate 0.76% 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 Real vs. Western Asset Global
Performance |
| Timeline |
| Cohen Steers Real |
| Western Asset Global |
Cohen Steers and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Western Asset
The main advantage of trading using opposite Cohen Steers and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Cohen Steers vs. Invesco High Income | Cohen Steers vs. Blackrock Muniholdings Ny | Cohen Steers vs. MFS Investment Grade | Cohen Steers vs. Federated Premier Municipal |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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