Correlation Between Cohen Steers and Nuveen Multi
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Nuveen Multi 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 Nuveen Multi 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 Nuveen Multi Mrkt, you can compare the effects of market volatilities on Cohen Steers and Nuveen Multi 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 Nuveen Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Nuveen Multi.
Diversification Opportunities for Cohen Steers and Nuveen Multi
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cohen and Nuveen is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Qualityome and Nuveen Multi Mrkt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Multi Mrkt 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 Nuveen Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Multi Mrkt has no effect on the direction of Cohen Steers i.e., Cohen Steers and Nuveen Multi go up and down completely randomly.
Pair Corralation between Cohen Steers and Nuveen Multi
Considering the 90-day investment horizon Cohen Steers Qualityome is expected to generate 2.29 times more return on investment than Nuveen Multi. However, Cohen Steers is 2.29 times more volatile than Nuveen Multi Mrkt. It trades about 0.13 of its potential returns per unit of risk. Nuveen Multi Mrkt is currently generating about 0.11 per unit of risk. If you would invest 853.00 in Cohen Steers Qualityome on August 25, 2024 and sell it today you would earn a total of 510.00 from holding Cohen Steers Qualityome or generate 59.79% 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. Nuveen Multi Mrkt
Performance |
| Timeline |
| Cohen Steers Qualityome |
| Nuveen Multi Mrkt |
Cohen Steers and Nuveen Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Nuveen Multi
The main advantage of trading using opposite Cohen Steers and Nuveen Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Nuveen Multi 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 Nuveen Multi will offset losses from the drop in Nuveen Multi's long position.| Cohen Steers vs. Cohen And Steers | Cohen Steers vs. Reaves Utility If | Cohen Steers vs. Cohen Steers Total | Cohen Steers vs. Pimco Dynamic Income |
| Nuveen Multi vs. Invesco High Income | Nuveen Multi vs. MFS Investment Grade | Nuveen Multi vs. Eaton Vance National | Nuveen Multi vs. Abrdn Emerging Markets |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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