Correlation Between Cohen Steers and First Trust
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and First Trust 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 First Trust 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 First Trust Mlp, you can compare the effects of market volatilities on Cohen Steers and First Trust 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 First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and First Trust.
Diversification Opportunities for Cohen Steers and First Trust
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cohen and First is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Reit and First Trust Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Mlp 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 First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Mlp has no effect on the direction of Cohen Steers i.e., Cohen Steers and First Trust go up and down completely randomly.
Pair Corralation between Cohen Steers and First Trust
If you would invest 815.00 in First Trust Mlp on August 29, 2024 and sell it today you would earn a total of 0.00 from holding First Trust Mlp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Cohen Steers Reit vs. First Trust Mlp
Performance |
| Timeline |
| Cohen Steers Reit |
| First Trust Mlp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cohen Steers and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and First Trust
The main advantage of trading using opposite Cohen Steers and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust'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 |
| First Trust vs. Franklin Templeton Limited | First Trust vs. Blackrock Floating Rate | First Trust vs. Cohen Steers Limited | First Trust vs. Eagle Point Income |
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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