Correlation Between Cohen and Cohen Steers

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Can any of the company-specific risk be diversified away by investing in both Cohen 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 Cohen and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen And Steers and Cohen Steers Real, you can compare the effects of market volatilities on Cohen 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 Cohen with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen and Cohen Steers.

Diversification Opportunities for Cohen and Cohen Steers

1.0
  Correlation Coefficient

No risk reduction

The 3 months correlation between Cohen and Cohen is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Cohen And Steers 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 Cohen 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 Cohen And Steers 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 Cohen i.e., Cohen and Cohen Steers go up and down completely randomly.

Pair Corralation between Cohen and Cohen Steers

Assuming the 90 days horizon Cohen And Steers is expected to generate 0.99 times more return on investment than Cohen Steers. However, Cohen And Steers is 1.01 times less risky than Cohen Steers. It trades about -0.01 of its potential returns per unit of risk. Cohen Steers Real is currently generating about -0.01 per unit of risk. If you would invest  5,227  in Cohen And Steers on December 30, 2023 and sell it today you would lose (640.00) from holding Cohen And Steers or give up 12.24% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy99.8%
ValuesDaily Returns

Cohen And Steers  vs.  Cohen Steers Real

 Performance 
       Timeline  
Cohen And Steers 

Risk-Adjusted Performance

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Low
 
High
Very Weak
Over the last 90 days Cohen And Steers has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Cohen is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Cohen Steers Real 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Cohen Steers Real has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Cohen Steers is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Cohen and Cohen Steers Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cohen and Cohen Steers

The main advantage of trading using opposite Cohen and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen 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.
The idea behind Cohen And Steers and Cohen Steers Real pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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