Correlation Between Sit Government and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Sit Government 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 Sit Government and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Government Securities and Cohen Steers Real, you can compare the effects of market volatilities on Sit Government 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 Sit Government with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Government and Cohen Steers.
Diversification Opportunities for Sit Government and Cohen Steers
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sit and Cohen is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sit Government Securities 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 Sit Government 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 Sit Government Securities 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 Sit Government i.e., Sit Government and Cohen Steers go up and down completely randomly.
Pair Corralation between Sit Government and Cohen Steers
Assuming the 90 days horizon Sit Government is expected to generate 2.94 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Sit Government Securities is 4.05 times less risky than Cohen Steers. It trades about 0.07 of its potential returns per unit of risk. Cohen Steers Real is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,309 in Cohen Steers Real on September 12, 2024 and sell it today you would earn a total of 157.00 from holding Cohen Steers Real or generate 11.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sit Government Securities vs. Cohen Steers Real
Performance |
| Timeline |
| Sit Government Securities |
| Cohen Steers Real |
Sit Government and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Government and Cohen Steers
The main advantage of trading using opposite Sit Government and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Government 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.| Sit Government vs. SCOR PK | Sit Government vs. Morningstar Unconstrained Allocation | Sit Government vs. Via Renewables | Sit Government vs. Bondbloxx ETF Trust |
| Cohen Steers vs. Dunham Porategovernment Bond | Cohen Steers vs. Virtus Seix Government | Cohen Steers vs. Sit Government Securities | Cohen Steers vs. Goldman Sachs Government |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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