Correlation Between Cohen Steers and Nuveen Global
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Nuveen Global 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 Global 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 Nuveen Global High, you can compare the effects of market volatilities on Cohen Steers and Nuveen Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Nuveen Global.
Diversification Opportunities for Cohen Steers and Nuveen Global
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cohen and Nuveen is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Real and Nuveen Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Global High 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 Nuveen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Global High has no effect on the direction of Cohen Steers i.e., Cohen Steers and Nuveen Global go up and down completely randomly.
Pair Corralation between Cohen Steers and Nuveen Global
Given the investment horizon of 90 days Cohen Steers Real is expected to under-perform the Nuveen Global. In addition to that, Cohen Steers is 2.33 times more volatile than Nuveen Global High. It trades about -0.07 of its total potential returns per unit of risk. Nuveen Global High is currently generating about 0.25 per unit of volatility. If you would invest 1,273 in Nuveen Global High on August 27, 2024 and sell it today you would earn a total of 39.00 from holding Nuveen Global High or generate 3.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Real vs. Nuveen Global High
Performance |
| Timeline |
| Cohen Steers Real |
| Nuveen Global High |
Cohen Steers and Nuveen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Nuveen Global
The main advantage of trading using opposite Cohen Steers and Nuveen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Nuveen Global 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 Global will offset losses from the drop in Nuveen Global'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 |
| Nuveen Global vs. Advent Claymore Convertible | Nuveen Global vs. Blackstone Gso Strategic | Nuveen Global vs. Western Asset Investment | Nuveen Global vs. Pioneer Floating Rate |
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.
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