Correlation Between Distoken Acquisition and Cohen Steers

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

By analyzing existing cross correlation between Distoken Acquisition and Cohen Steers Real, you can compare the effects of market volatilities on Distoken Acquisition 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 Distoken Acquisition with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Distoken Acquisition and Cohen Steers.

Diversification Opportunities for Distoken Acquisition and Cohen Steers

0.1

Correlation Coefficient

Distoken Acquisition  Cohen Steers

Average diversification

The 3 months correlation between Distoken and Cohen is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Distoken Acquisition and Cohen Steers Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Real and Distoken Acquisition 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 Distoken Acquisition 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 Real has no effect on the direction of Distoken Acquisition i.e., Distoken Acquisition and Cohen Steers go up and down completely randomly.

Pair Corralation between Distoken Acquisition and Cohen Steers

Given the investment horizon of 90 days Distoken Acquisition is expected to under-perform the Cohen Steers. In addition to that, Distoken Acquisition is 2.58 times more volatile than Cohen Steers Real. It trades about -0.04 of its total potential returns per unit of risk. Cohen Steers Real is currently generating about 0.3 per unit of volatility. If you would invest  1,544  in Cohen Steers Real on December 1, 2024 and sell it today you would earn a total of  47.00  from holding Cohen Steers Real or generate 3.04% return on investment over 90 days.

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

Distoken Acquisition  vs.  Cohen Steers Real

Distoken Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Distoken Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Distoken Acquisition is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Cohen Steers Real

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Steers Real are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Cohen Steers is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Distoken Acquisition and Cohen Steers

The main advantage of trading using opposite Distoken Acquisition and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Distoken Acquisition 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 Distoken Acquisition and Cohen Steers Real 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.

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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..