Correlation Between Cohen Steers and Aquagold International
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Aquagold International 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 Aquagold International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Real and Aquagold International, you can compare the effects of market volatilities on Cohen Steers and Aquagold International 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 Aquagold International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Aquagold International.
Diversification Opportunities for Cohen Steers and Aquagold International
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and Aquagold is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Real and Aquagold International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquagold International 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 Real are associated (or correlated) with Aquagold International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquagold International has no effect on the direction of Cohen Steers i.e., Cohen Steers and Aquagold International go up and down completely randomly.
Pair Corralation between Cohen Steers and Aquagold International
Assuming the 90 days horizon Cohen Steers is expected to generate 46.73 times less return on investment than Aquagold International. But when comparing it to its historical volatility, Cohen Steers Real is 47.02 times less risky than Aquagold International. It trades about 0.05 of its potential returns per unit of risk. Aquagold International is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 24.00 in Aquagold International on December 5, 2024 and sell it today you would lose (23.98) from holding Aquagold International or give up 99.92% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 99.6% |
Values | Daily Returns |
Cohen Steers Real vs. Aquagold International
Performance |
Timeline |
Cohen Steers Real |
Aquagold International |
Cohen Steers and Aquagold International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cohen Steers and Aquagold International
The main advantage of trading using opposite Cohen Steers and Aquagold International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Aquagold International 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 Aquagold International will offset losses from the drop in Aquagold International's long position.Cohen Steers vs. Cohen Steers Low | Cohen Steers vs. Cohen Steers Low | Cohen Steers vs. Cohen Steers Low | Cohen Steers vs. Cohen Steers Low |
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Check out your portfolio center.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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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