Correlation Between Cohen Steers and Templeton Global

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

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

Diversification Opportunities for Cohen Steers and Templeton Global

-0.53

Correlation Coefficient

Cohen Steers  Templeton Global

Excellent diversification

The 3 months correlation between Cohen and Templeton is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Realty and Templeton Global Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Income 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 Realty are associated (or correlated) with Templeton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Global Income has no effect on the direction of Cohen Steers i.e., Cohen Steers and Templeton Global go up and down completely randomly.

Pair Corralation between Cohen Steers and Templeton Global

If you would invest  423.00  in Templeton Global Income on September 20, 2024 and sell it today you would earn a total of  0.00  from holding Templeton Global Income or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	4.76%
Values	Daily Returns

Cohen Steers Realty  vs.  Templeton Global Income

Cohen Steers Realty

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cohen Steers Realty 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 recent stock price disturbance, may contribute to short-term losses for the investors.

Templeton Global Income

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Templeton Global Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy forward indicators, Templeton Global is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Cohen Steers and Templeton Global

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

The idea behind Cohen Steers Realty and Templeton Global Income 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 Global Correlations module to find global opportunities by holding instruments from different markets.