Correlation Between Safety Insurance and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Safety Insurance and Cohen Steers 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 Safety Insurance and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safety Insurance Group and Cohen Steers, you can compare the effects of market volatilities on Safety Insurance and Cohen Steers 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 Safety Insurance with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safety Insurance and Cohen Steers.
Diversification Opportunities for Safety Insurance and Cohen Steers
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Safety and Cohen is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Safety Insurance Group and Cohen Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers and Safety Insurance 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 Safety Insurance Group are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers has no effect on the direction of Safety Insurance i.e., Safety Insurance and Cohen Steers go up and down completely randomly.
Pair Corralation between Safety Insurance and Cohen Steers
Assuming the 90 days horizon Safety Insurance Group is expected to generate 0.71 times more return on investment than Cohen Steers. However, Safety Insurance Group is 1.4 times less risky than Cohen Steers. It trades about -0.19 of its potential returns per unit of risk. Cohen Steers is currently generating about -0.25 per unit of risk. If you would invest 7,850 in Safety Insurance Group on October 25, 2024 and sell it today you would lose (350.00) from holding Safety Insurance Group or give up 4.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safety Insurance Group vs. Cohen Steers
Performance |
| Timeline |
| Safety Insurance |
| Cohen Steers |
Safety Insurance and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safety Insurance and Cohen Steers
The main advantage of trading using opposite Safety Insurance and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safety Insurance position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Safety Insurance vs. PARKEN Sport Entertainment | Safety Insurance vs. INTER CARS SA | Safety Insurance vs. TOWNSQUARE MEDIA INC | Safety Insurance vs. Carsales |
| Cohen Steers vs. INSURANCE AUST GRP | Cohen Steers vs. Safety Insurance Group | Cohen Steers vs. Fuji Media Holdings | Cohen Steers vs. Goosehead Insurance |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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