Correlation Between XAI Octagon and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both XAI Octagon 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 XAI Octagon and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XAI Octagon Floating and Cohen Steers Reit, you can compare the effects of market volatilities on XAI Octagon 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 XAI Octagon with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of XAI Octagon and Cohen Steers.
Diversification Opportunities for XAI Octagon and Cohen Steers
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XAI and Cohen is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding XAI Octagon Floating 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 XAI Octagon 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 XAI Octagon Floating 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 XAI Octagon i.e., XAI Octagon and Cohen Steers go up and down completely randomly.
Pair Corralation between XAI Octagon and Cohen Steers
Given the investment horizon of 90 days XAI Octagon is expected to generate 3.34 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, XAI Octagon Floating is 2.76 times less risky than Cohen Steers. It trades about 0.11 of its potential returns per unit of risk. Cohen Steers Reit is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,975 in Cohen Steers Reit on September 3, 2024 and sell it today you would earn a total of 356.00 from holding Cohen Steers Reit or generate 18.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XAI Octagon Floating vs. Cohen Steers Reit
Performance |
| Timeline |
| XAI Octagon Floating |
| Cohen Steers Reit |
XAI Octagon and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XAI Octagon and Cohen Steers
The main advantage of trading using opposite XAI Octagon and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XAI Octagon 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.| XAI Octagon vs. Oxford Lane Capital | XAI Octagon vs. Capital Southwest | XAI Octagon vs. Cornerstone Strategic Return | XAI Octagon vs. Cornerstone Strategic Value |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |