Correlation Between BlackRock Health and Cohen Steers

Can any of the company-specific risk be diversified away by investing in both BlackRock Health 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 BlackRock Health and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BlackRock Health Sciences and Cohen Steers Qualityome, you can compare the effects of market volatilities on BlackRock Health 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 BlackRock Health with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Health and Cohen Steers.

Diversification Opportunities for BlackRock Health and Cohen Steers

0.76

Correlation Coefficient

BlackRock Health  Cohen Steers

Poor diversification

The 3 months correlation between BlackRock and Cohen is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Health Sciences and Cohen Steers Qualityome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Qualityome and BlackRock Health 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 BlackRock Health Sciences 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 Qualityome has no effect on the direction of BlackRock Health i.e., BlackRock Health and Cohen Steers go up and down completely randomly.

Pair Corralation between BlackRock Health and Cohen Steers

Given the investment horizon of 90 days BlackRock Health Sciences is expected to generate 1.24 times more return on investment than Cohen Steers. However, BlackRock Health is 1.24 times more volatile than Cohen Steers Qualityome. It trades about 0.09 of its potential returns per unit of risk. Cohen Steers Qualityome is currently generating about 0.08 per unit of risk. If you would invest  1,395  in BlackRock Health Sciences on December 29, 2024 and sell it today you would earn a total of  96.00  from holding BlackRock Health Sciences or generate 6.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

BlackRock Health Sciences  vs.  Cohen Steers Qualityome

BlackRock Health Sciences

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock Health Sciences are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain technical and fundamental indicators, BlackRock Health may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Cohen Steers Qualityome

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Steers Qualityome are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. Despite fairly strong basic indicators, Cohen Steers is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with BlackRock Health and Cohen Steers

The main advantage of trading using opposite BlackRock Health and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock Health 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 BlackRock Health Sciences and Cohen Steers Qualityome 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.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.