Correlation Between Vanguard Emerging and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Vanguard 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 Vanguard 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 Vanguard Emerging Markets and Cohen Steers Low, you can compare the effects of market volatilities on Vanguard 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 Vanguard Emerging with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Emerging and Cohen Steers.
Diversification Opportunities for Vanguard Emerging and Cohen Steers
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vanguard and Cohen is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Emerging Markets and Cohen Steers Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Low and Vanguard 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 Vanguard 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 Low has no effect on the direction of Vanguard Emerging i.e., Vanguard Emerging and Cohen Steers go up and down completely randomly.
Pair Corralation between Vanguard Emerging and Cohen Steers
Assuming the 90 days horizon Vanguard Emerging Markets is expected to generate 3.14 times more return on investment than Cohen Steers. However, Vanguard Emerging is 3.14 times more volatile than Cohen Steers Low. It trades about 0.12 of its potential returns per unit of risk. Cohen Steers Low is currently generating about 0.34 per unit of risk. If you would invest 2,157 in Vanguard Emerging Markets on November 3, 2024 and sell it today you would earn a total of 190.00 from holding Vanguard Emerging Markets or generate 8.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Emerging Markets vs. Cohen Steers Low
Performance |
| Timeline |
| Vanguard Emerging Markets |
| Cohen Steers Low |
Vanguard Emerging and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Emerging and Cohen Steers
The main advantage of trading using opposite Vanguard Emerging and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard 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.| Vanguard Emerging vs. The Gabelli Healthcare | Vanguard Emerging vs. Health Care Ultrasector | Vanguard Emerging vs. Live Oak Health | Vanguard Emerging vs. Tekla Healthcare Investors |
| Cohen Steers vs. Schwab Government Money | Cohen Steers vs. Us Government Securities | Cohen Steers vs. Prudential Government Money | Cohen Steers vs. Intermediate Government Bond |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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