Correlation Between Cohen Steers and Equus Total

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

By analyzing existing cross correlation between Cohen Steers and Equus Total Return, you can compare the effects of market volatilities on Cohen Steers and Equus Total 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 Equus Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Equus Total.

Diversification Opportunities for Cohen Steers and Equus Total

-0.33

Correlation Coefficient

Cohen Steers  Equus Total

Very good diversification

The 3 months correlation between Cohen and Equus is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers and Equus Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equus Total Return 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 Equus Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equus Total Return has no effect on the direction of Cohen Steers i.e., Cohen Steers and Equus Total go up and down completely randomly.

Pair Corralation between Cohen Steers and Equus Total

Considering the 90-day investment horizon Cohen Steers is expected to under-perform the Equus Total. But the stock apears to be less risky and, when comparing its historical volatility, Cohen Steers is 2.69 times less risky than Equus Total. The stock trades about -0.19 of its potential returns per unit of risk. The Equus Total Return is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  120.00  in Equus Total Return on November 28, 2024 and sell it today you would earn a total of  15.00  from holding Equus Total Return or generate 12.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.31%
Values	Daily Returns

Cohen Steers  vs.  Equus Total Return

Cohen Steers

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cohen Steers has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Equus Total Return

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Equus Total Return are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Equus Total unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cohen Steers and Equus Total

The main advantage of trading using opposite Cohen Steers and Equus Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Equus Total 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 Equus Total will offset losses from the drop in Equus Total's long position.

The idea behind Cohen Steers and Equus Total Return 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.