Correlation Between Cohen Steers and Canon Marketing
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Canon Marketing 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 Steers and Canon Marketing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers and Canon Marketing Japan, you can compare the effects of market volatilities on Cohen Steers and Canon Marketing 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 Steers with a short position of Canon Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Canon Marketing.
Diversification Opportunities for Cohen Steers and Canon Marketing
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cohen and Canon is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers and Canon Marketing Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canon Marketing Japan and Cohen Steers 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 Steers are associated (or correlated) with Canon Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canon Marketing Japan has no effect on the direction of Cohen Steers i.e., Cohen Steers and Canon Marketing go up and down completely randomly.
Pair Corralation between Cohen Steers and Canon Marketing
Assuming the 90 days horizon Cohen Steers is expected to under-perform the Canon Marketing. In addition to that, Cohen Steers is 1.42 times more volatile than Canon Marketing Japan. It trades about -0.12 of its total potential returns per unit of risk. Canon Marketing Japan is currently generating about 0.27 per unit of volatility. If you would invest 2,860 in Canon Marketing Japan on September 11, 2024 and sell it today you would earn a total of 180.00 from holding Canon Marketing Japan or generate 6.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Cohen Steers vs. Canon Marketing Japan
Performance |
Timeline |
Cohen Steers |
Canon Marketing Japan |
Cohen Steers and Canon Marketing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cohen Steers and Canon Marketing
The main advantage of trading using opposite Cohen Steers and Canon Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Canon Marketing 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 Canon Marketing will offset losses from the drop in Canon Marketing's long position.Cohen Steers vs. ANTA SPORTS PRODUCT | Cohen Steers vs. KOOL2PLAY SA ZY | Cohen Steers vs. DATAGROUP SE | Cohen Steers vs. Automatic Data Processing |
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