Correlation Between CarsalesCom and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both CarsalesCom 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 CarsalesCom and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CarsalesCom and Cohen Steers, you can compare the effects of market volatilities on CarsalesCom 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 CarsalesCom with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of CarsalesCom and Cohen Steers.
Diversification Opportunities for CarsalesCom and Cohen Steers
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CarsalesCom and Cohen is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding CarsalesCom and Cohen Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers and CarsalesCom 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 CarsalesCom 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 has no effect on the direction of CarsalesCom i.e., CarsalesCom and Cohen Steers go up and down completely randomly.
Pair Corralation between CarsalesCom and Cohen Steers
Assuming the 90 days horizon CarsalesCom is expected to generate 0.83 times more return on investment than Cohen Steers. However, CarsalesCom is 1.2 times less risky than Cohen Steers. It trades about 0.06 of its potential returns per unit of risk. Cohen Steers is currently generating about -0.13 per unit of risk. If you would invest 2,400 in CarsalesCom on September 12, 2024 and sell it today you would earn a total of 40.00 from holding CarsalesCom or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CarsalesCom vs. Cohen Steers
Performance |
| Timeline |
| CarsalesCom |
| Cohen Steers |
CarsalesCom and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CarsalesCom and Cohen Steers
The main advantage of trading using opposite CarsalesCom and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CarsalesCom 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.| CarsalesCom vs. Tencent Holdings | CarsalesCom vs. Superior Plus Corp | CarsalesCom vs. SIVERS SEMICONDUCTORS AB | CarsalesCom vs. NorAm Drilling AS |
| Cohen Steers vs. THAI BEVERAGE | Cohen Steers vs. 24SEVENOFFICE GROUP AB | Cohen Steers vs. Laureate Education | Cohen Steers vs. CAREER EDUCATION |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |