Correlation Between Cohen Steers and Aberdeen Standard
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Aberdeen Standard 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 Aberdeen Standard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Reit and Aberdeen Standard Global, you can compare the effects of market volatilities on Cohen Steers and Aberdeen Standard 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 Aberdeen Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Aberdeen Standard.
Diversification Opportunities for Cohen Steers and Aberdeen Standard
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cohen and Aberdeen is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Reit and Aberdeen Standard Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Standard 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 Reit are associated (or correlated) with Aberdeen Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Standard Global has no effect on the direction of Cohen Steers i.e., Cohen Steers and Aberdeen Standard go up and down completely randomly.
Pair Corralation between Cohen Steers and Aberdeen Standard
Considering the 90-day investment horizon Cohen Steers Reit is expected to generate 1.08 times more return on investment than Aberdeen Standard. However, Cohen Steers is 1.08 times more volatile than Aberdeen Standard Global. It trades about 0.14 of its potential returns per unit of risk. Aberdeen Standard Global is currently generating about 0.09 per unit of risk. If you would invest 1,905 in Cohen Steers Reit on August 28, 2024 and sell it today you would earn a total of 382.00 from holding Cohen Steers Reit or generate 20.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Reit vs. Aberdeen Standard Global
Performance |
| Timeline |
| Cohen Steers Reit |
| Aberdeen Standard Global |
Cohen Steers and Aberdeen Standard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Aberdeen Standard
The main advantage of trading using opposite Cohen Steers and Aberdeen Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Aberdeen Standard 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 Aberdeen Standard will offset losses from the drop in Aberdeen Standard's long position.| Cohen Steers vs. Allspring Income Opportunities | Cohen Steers vs. Allspring Global Dividend | Cohen Steers vs. Blackstone Gso Senior | Cohen Steers vs. John Hancock Preferred |
| Aberdeen Standard vs. Blackrock Muniyield Quality | Aberdeen Standard vs. PIMCO Access Income | Aberdeen Standard vs. Nuveen Municipal Credit | Aberdeen Standard vs. Western Asset Diversified |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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