Correlation Between Cohen and Cohen Steers

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 Intl, 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

0.64

Correlation Coefficient

Cohen  Cohen Steers

Poor diversification

The 3 months correlation between Cohen and Cohen is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Cohen And Steers and Cohen Steers Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Intl 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 Intl 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 1.2 times more return on investment than Cohen Steers. However, Cohen is 1.2 times more volatile than Cohen Steers Intl. It trades about 0.04 of its potential returns per unit of risk. Cohen Steers Intl is currently generating about 0.0 per unit of risk. If you would invest  4,039  in Cohen And Steers on September 14, 2024 and sell it today you would earn a total of  960.00  from holding Cohen And Steers or generate 23.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.8%
Values	Daily Returns

Cohen And Steers  vs.  Cohen Steers Intl

Cohen And Steers

Risk-Adjusted Performance

0 of 100

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 latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Cohen Steers Intl

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cohen Steers Intl has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

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 Intl 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.