Correlation Between Cohen Steers and Nuveen Global

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

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

Diversification Opportunities for Cohen Steers and Nuveen Global

0.78

Correlation Coefficient

Cohen Steers  Nuveen Global

Poor diversification

The 3 months correlation between Cohen and Nuveen is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Global and Nuveen Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Global Infras 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 Global are associated (or correlated) with Nuveen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Global Infras has no effect on the direction of Cohen Steers i.e., Cohen Steers and Nuveen Global go up and down completely randomly.

Pair Corralation between Cohen Steers and Nuveen Global

Assuming the 90 days horizon Cohen Steers is expected to generate 1.18 times less return on investment than Nuveen Global. But when comparing it to its historical volatility, Cohen Steers Global is 1.11 times less risky than Nuveen Global. It trades about 0.05 of its potential returns per unit of risk. Nuveen Global Infrastructure is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,105  in Nuveen Global Infrastructure on September 30, 2024 and sell it today you would earn a total of  52.00  from holding Nuveen Global Infrastructure or generate 4.71% return on investment over 90 days.

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

Cohen Steers Global  vs.  Nuveen Global Infrastructure

Cohen Steers Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cohen Steers Global has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Nuveen Global Infras

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuveen Global Infrastructure has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Cohen Steers and Nuveen Global

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

The idea behind Cohen Steers Global and Nuveen Global Infrastructure 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.