Correlation Between Snap and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Snap 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 Snap and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and Cohen Steers Reit, you can compare the effects of market volatilities on Snap 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 Snap with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Cohen Steers.
Diversification Opportunities for Snap and Cohen Steers
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Snap and Cohen is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and Cohen Steers Reit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Reit and Snap 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 Snap Inc 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 Reit has no effect on the direction of Snap i.e., Snap and Cohen Steers go up and down completely randomly.
Pair Corralation between Snap and Cohen Steers
Given the investment horizon of 90 days Snap Inc is expected to generate 3.48 times more return on investment than Cohen Steers. However, Snap is 3.48 times more volatile than Cohen Steers Reit. It trades about 0.1 of its potential returns per unit of risk. Cohen Steers Reit is currently generating about -0.05 per unit of risk. If you would invest 1,071 in Snap Inc on August 28, 2024 and sell it today you would earn a total of 89.00 from holding Snap Inc or generate 8.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Snap Inc vs. Cohen Steers Reit
Performance |
| Timeline |
| Snap Inc |
| Cohen Steers Reit |
Snap and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Cohen Steers
The main advantage of trading using opposite Snap and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap 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.The idea behind Snap Inc and Cohen Steers Reit pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Cohen Steers vs. Cohen And Steers | Cohen Steers vs. Cohen Steers Total | Cohen Steers vs. Reaves Utility If | Cohen Steers vs. BlackRock Science Tech |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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