Correlation Between Cohen Steers and Duff
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Duff 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 Duff 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 Duff And Phelps, you can compare the effects of market volatilities on Cohen Steers and Duff 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 Duff. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Duff.
Diversification Opportunities for Cohen Steers and Duff
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cohen and Duff is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Reit and Duff And Phelps in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duff And Phelps 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 Duff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duff And Phelps has no effect on the direction of Cohen Steers i.e., Cohen Steers and Duff go up and down completely randomly.
Pair Corralation between Cohen Steers and Duff
Considering the 90-day investment horizon Cohen Steers Reit is expected to under-perform the Duff. In addition to that, Cohen Steers is 1.29 times more volatile than Duff And Phelps. It trades about -0.05 of its total potential returns per unit of risk. Duff And Phelps is currently generating about 0.31 per unit of volatility. If you would invest 1,150 in Duff And Phelps on August 29, 2024 and sell it today you would earn a total of 85.00 from holding Duff And Phelps or generate 7.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Reit vs. Duff And Phelps
Performance |
| Timeline |
| Cohen Steers Reit |
| Duff And Phelps |
Cohen Steers and Duff Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Duff
The main advantage of trading using opposite Cohen Steers and Duff positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Duff 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 Duff will offset losses from the drop in Duff'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 |
| Duff vs. Gabelli Global Small | Duff vs. MFS Investment Grade | Duff vs. Eaton Vance National | Duff vs. GAMCO Natural Resources |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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