Correlation Between Cohen Steers and Aberdeen Japan
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Aberdeen Japan 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 Aberdeen Japan 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 Aberdeen Japan Equity, you can compare the effects of market volatilities on Cohen Steers and Aberdeen Japan 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 Aberdeen Japan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Aberdeen Japan.
Diversification Opportunities for Cohen Steers and Aberdeen Japan
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cohen and Aberdeen is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Qualityome and Aberdeen Japan Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Japan Equity 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 Aberdeen Japan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Japan Equity has no effect on the direction of Cohen Steers i.e., Cohen Steers and Aberdeen Japan go up and down completely randomly.
Pair Corralation between Cohen Steers and Aberdeen Japan
Considering the 90-day investment horizon Cohen Steers Qualityome is expected to generate 1.22 times more return on investment than Aberdeen Japan. However, Cohen Steers is 1.22 times more volatile than Aberdeen Japan Equity. It trades about 0.05 of its potential returns per unit of risk. Aberdeen Japan Equity is currently generating about 0.04 per unit of risk. If you would invest 1,071 in Cohen Steers Qualityome on August 31, 2024 and sell it today you would earn a total of 322.00 from holding Cohen Steers Qualityome or generate 30.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Qualityome vs. Aberdeen Japan Equity
Performance |
| Timeline |
| Cohen Steers Qualityome |
| Aberdeen Japan Equity |
Cohen Steers and Aberdeen Japan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Aberdeen Japan
The main advantage of trading using opposite Cohen Steers and Aberdeen Japan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Aberdeen Japan 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 Aberdeen Japan will offset losses from the drop in Aberdeen Japan's long position.| Cohen Steers vs. MFS Investment Grade | Cohen Steers vs. Eaton Vance Municipal | Cohen Steers vs. DTF Tax Free | Cohen Steers vs. HUMANA INC |
| Aberdeen Japan vs. Aberdeen Gbl Eq | Aberdeen Japan vs. Aberdeen Gbl Eq | Aberdeen Japan vs. Aberdeen Global Equty |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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