Correlation Between Cohen Steers and Guggenheim Active
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Guggenheim Active 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 Guggenheim Active 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 Guggenheim Active Allocation, you can compare the effects of market volatilities on Cohen Steers and Guggenheim Active 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 Guggenheim Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Guggenheim Active.
Diversification Opportunities for Cohen Steers and Guggenheim Active
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cohen and Guggenheim is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Real and Guggenheim Active Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Active 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 Guggenheim Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Active has no effect on the direction of Cohen Steers i.e., Cohen Steers and Guggenheim Active go up and down completely randomly.
Pair Corralation between Cohen Steers and Guggenheim Active
Given the investment horizon of 90 days Cohen Steers Real is expected to generate 1.53 times more return on investment than Guggenheim Active. However, Cohen Steers is 1.53 times more volatile than Guggenheim Active Allocation. It trades about 0.07 of its potential returns per unit of risk. Guggenheim Active Allocation is currently generating about 0.09 per unit of risk. If you would invest 1,186 in Cohen Steers Real on August 31, 2024 and sell it today you would earn a total of 468.00 from holding Cohen Steers Real or generate 39.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Real vs. Guggenheim Active Allocation
Performance |
| Timeline |
| Cohen Steers Real |
| Guggenheim Active |
Cohen Steers and Guggenheim Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Guggenheim Active
The main advantage of trading using opposite Cohen Steers and Guggenheim Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Guggenheim Active 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 Guggenheim Active will offset losses from the drop in Guggenheim Active's long position.| Cohen Steers vs. Guggenheim Active Allocation | Cohen Steers vs. RiverNorth Flexible Municipalome | Cohen Steers vs. Western Asset Diversified | Cohen Steers vs. Cohen Steers Tax Advantaged |
| Guggenheim Active vs. Cohen Steers Real | Guggenheim Active vs. RiverNorth Flexible Municipalome | Guggenheim Active vs. Western Asset Diversified | Guggenheim Active vs. Cohen Steers Tax Advantaged |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |