Correlation Between Siit Emerging and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Siit Emerging 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 Siit Emerging and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Emerging Markets and Cohen Steers Real, you can compare the effects of market volatilities on Siit Emerging 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 Siit Emerging with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Emerging and Cohen Steers.
Diversification Opportunities for Siit Emerging and Cohen Steers
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siit and Cohen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Siit Emerging Markets and Cohen Steers Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Real and Siit Emerging 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 Siit Emerging Markets 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 Real has no effect on the direction of Siit Emerging i.e., Siit Emerging and Cohen Steers go up and down completely randomly.
Pair Corralation between Siit Emerging and Cohen Steers
Assuming the 90 days horizon Siit Emerging Markets is expected to under-perform the Cohen Steers. In addition to that, Siit Emerging is 1.16 times more volatile than Cohen Steers Real. It trades about -0.17 of its total potential returns per unit of risk. Cohen Steers Real is currently generating about 0.14 per unit of volatility. If you would invest 1,041 in Cohen Steers Real on September 2, 2024 and sell it today you would earn a total of 16.00 from holding Cohen Steers Real or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Emerging Markets vs. Cohen Steers Real
Performance |
| Timeline |
| Siit Emerging Markets |
| Cohen Steers Real |
Siit Emerging and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Emerging and Cohen Steers
The main advantage of trading using opposite Siit Emerging and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Emerging 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.| Siit Emerging vs. Saat Market Growth | Siit Emerging vs. Simt Real Return | Siit Emerging vs. Simt Small Cap | Siit Emerging vs. Siit Screened World |
| Cohen Steers vs. Lord Abbett Diversified | Cohen Steers vs. Delaware Limited Term Diversified | Cohen Steers vs. Fidelity Advisor Diversified | Cohen Steers vs. Small Cap Stock |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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