Correlation Between Cohen Steers and Flaherty
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Flaherty 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 Flaherty 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 Flaherty and Crumrine, you can compare the effects of market volatilities on Cohen Steers and Flaherty 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 Flaherty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Flaherty.
Diversification Opportunities for Cohen Steers and Flaherty
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cohen and Flaherty is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Qualityome and Flaherty and Crumrine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flaherty and Crumrine 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 Flaherty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flaherty and Crumrine has no effect on the direction of Cohen Steers i.e., Cohen Steers and Flaherty go up and down completely randomly.
Pair Corralation between Cohen Steers and Flaherty
Considering the 90-day investment horizon Cohen Steers Qualityome is expected to generate 1.6 times more return on investment than Flaherty. However, Cohen Steers is 1.6 times more volatile than Flaherty and Crumrine. It trades about 0.09 of its potential returns per unit of risk. Flaherty and Crumrine is currently generating about 0.04 per unit of risk. If you would invest 1,286 in Cohen Steers Qualityome on November 27, 2024 and sell it today you would earn a total of 16.00 from holding Cohen Steers Qualityome or generate 1.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cohen Steers Qualityome vs. Flaherty and Crumrine
Performance |
Timeline |
Cohen Steers Qualityome |
Flaherty and Crumrine |
Cohen Steers and Flaherty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cohen Steers and Flaherty
The main advantage of trading using opposite Cohen Steers and Flaherty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Flaherty 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 Flaherty will offset losses from the drop in Flaherty's long position.Cohen Steers vs. Cohen And Steers | ||
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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