Correlation Between Cohen Steers and CBH
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and CBH 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 CBH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Qualityome and CBH, you can compare the effects of market volatilities on Cohen Steers and CBH 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 CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and CBH.
Diversification Opportunities for Cohen Steers and CBH
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cohen and CBH is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Qualityome and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH 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 Qualityome are associated (or correlated) with CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of Cohen Steers i.e., Cohen Steers and CBH go up and down completely randomly.
Pair Corralation between Cohen Steers and CBH
Considering the 90-day investment horizon Cohen Steers Qualityome is expected to generate 4.64 times more return on investment than CBH. However, Cohen Steers is 4.64 times more volatile than CBH. It trades about 0.09 of its potential returns per unit of risk. CBH is currently generating about 0.16 per unit of risk. If you would invest 1,104 in Cohen Steers Qualityome on August 28, 2024 and sell it today you would earn a total of 260.00 from holding Cohen Steers Qualityome or generate 23.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.29% |
| Values | Daily Returns |
Cohen Steers Qualityome vs. CBH
Performance |
| Timeline |
| Cohen Steers Qualityome |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cohen Steers and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and CBH
The main advantage of trading using opposite Cohen Steers and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, CBH 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 CBH will offset losses from the drop in CBH's long position.| Cohen Steers vs. Cohen And Steers | Cohen Steers vs. Reaves Utility If | Cohen Steers vs. Pimco Dynamic Income | Cohen Steers vs. Cohen Steers Reit |
| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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