Correlation Between Thornburg Income and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Thornburg Income 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 Thornburg Income and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thornburg Income Builder and Cohen Steers Real, you can compare the effects of market volatilities on Thornburg Income 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 Thornburg Income with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg Income and Cohen Steers.
Diversification Opportunities for Thornburg Income and Cohen Steers
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thornburg and Cohen is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg Income Builder 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 Thornburg Income 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 Thornburg Income Builder 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 Thornburg Income i.e., Thornburg Income and Cohen Steers go up and down completely randomly.
Pair Corralation between Thornburg Income and Cohen Steers
Given the investment horizon of 90 days Thornburg Income Builder is expected to under-perform the Cohen Steers. But the stock apears to be less risky and, when comparing its historical volatility, Thornburg Income Builder is 1.86 times less risky than Cohen Steers. The stock trades about -0.26 of its potential returns per unit of risk. The Cohen Steers Real is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,651 in Cohen Steers Real on August 24, 2024 and sell it today you would lose (43.00) from holding Cohen Steers Real or give up 2.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thornburg Income Builder vs. Cohen Steers Real
Performance |
| Timeline |
| Thornburg Income Builder |
| Cohen Steers Real |
Thornburg Income and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg Income and Cohen Steers
The main advantage of trading using opposite Thornburg Income and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg Income 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.| Thornburg Income vs. Guggenheim Active Allocation | Thornburg Income vs. Pioneer Floating Rate | Thornburg Income vs. DTF Tax Free | Thornburg Income vs. BlackRock Floating Rate |
| Cohen Steers vs. Invesco High Income | Cohen Steers vs. Blackrock Muniholdings Ny | Cohen Steers vs. MFS Investment Grade | Cohen Steers vs. Federated Premier Municipal |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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