Correlation Between Cohen Steers and XAI Octagon
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and XAI Octagon 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 XAI Octagon 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 XAI Octagon Floating, you can compare the effects of market volatilities on Cohen Steers and XAI Octagon 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 XAI Octagon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and XAI Octagon.
Diversification Opportunities for Cohen Steers and XAI Octagon
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cohen and XAI is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Reit and XAI Octagon Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XAI Octagon Floating 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 XAI Octagon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XAI Octagon Floating has no effect on the direction of Cohen Steers i.e., Cohen Steers and XAI Octagon go up and down completely randomly.
Pair Corralation between Cohen Steers and XAI Octagon
Considering the 90-day investment horizon Cohen Steers Reit is expected to generate 1.81 times more return on investment than XAI Octagon. However, Cohen Steers is 1.81 times more volatile than XAI Octagon Floating. It trades about 0.09 of its potential returns per unit of risk. XAI Octagon Floating is currently generating about 0.11 per unit of risk. If you would invest 1,792 in Cohen Steers Reit on September 4, 2024 and sell it today you would earn a total of 495.00 from holding Cohen Steers Reit or generate 27.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Reit vs. XAI Octagon Floating
Performance |
| Timeline |
| Cohen Steers Reit |
| XAI Octagon Floating |
Cohen Steers and XAI Octagon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and XAI Octagon
The main advantage of trading using opposite Cohen Steers and XAI Octagon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, XAI Octagon 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 XAI Octagon will offset losses from the drop in XAI Octagon'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 |
| XAI Octagon vs. Oxford Lane Capital | XAI Octagon vs. Capital Southwest | XAI Octagon vs. Cornerstone Strategic Return | XAI Octagon vs. Cornerstone Strategic Value |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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