Correlation Between Cohen Steers and Aberdeen Global
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Aberdeen 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 Aberdeen Global 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 Global Premier, you can compare the effects of market volatilities on Cohen Steers and Aberdeen 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 Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Aberdeen Global.
Diversification Opportunities for Cohen Steers and Aberdeen Global
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and Aberdeen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Reit and Aberdeen Global Premier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global Premier 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Global Premier has no effect on the direction of Cohen Steers i.e., Cohen Steers and Aberdeen Global go up and down completely randomly.
Pair Corralation between Cohen Steers and Aberdeen Global
Considering the 90-day investment horizon Cohen Steers Reit is expected to generate 0.87 times more return on investment than Aberdeen Global. However, Cohen Steers Reit is 1.15 times less risky than Aberdeen Global. It trades about 0.14 of its potential returns per unit of risk. Aberdeen Global Premier is currently generating about 0.12 per unit of risk. If you would invest 1,448 in Cohen Steers Reit on August 25, 2024 and sell it today you would earn a total of 848.00 from holding Cohen Steers Reit or generate 58.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Reit vs. Aberdeen Global Premier
Performance |
| Timeline |
| Cohen Steers Reit |
| Aberdeen Global Premier |
Cohen Steers and Aberdeen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Aberdeen Global
The main advantage of trading using opposite Cohen Steers and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Aberdeen 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 Aberdeen Global will offset losses from the drop in Aberdeen Global's long position.| Cohen Steers vs. Cohen And Steers | Cohen Steers vs. Cohen Steers Total | Cohen Steers vs. Reaves Utility If | Cohen Steers vs. BlackRock Science Tech |
| Aberdeen Global vs. Aberdeen Total Dynamic | Aberdeen Global vs. Alliancebernstein National Municipal | Aberdeen Global vs. Aberdeen Standard Global | Aberdeen Global vs. BlackRock Energy and |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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