Correlation Between Nuveen Global and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Nuveen Global 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 Nuveen Global and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Global Infrastructure and Cohen Steers Global, you can compare the effects of market volatilities on Nuveen Global 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 Nuveen Global with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Global and Cohen Steers.
Diversification Opportunities for Nuveen Global and Cohen Steers
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nuveen and Cohen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Global Infrastructure and Cohen Steers Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Global and Nuveen Global 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 Nuveen Global Infrastructure 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 Global has no effect on the direction of Nuveen Global i.e., Nuveen Global and Cohen Steers go up and down completely randomly.
Pair Corralation between Nuveen Global and Cohen Steers
Assuming the 90 days horizon Nuveen Global Infrastructure is expected to generate 1.1 times more return on investment than Cohen Steers. However, Nuveen Global is 1.1 times more volatile than Cohen Steers Global. It trades about 0.11 of its potential returns per unit of risk. Cohen Steers Global is currently generating about 0.09 per unit of risk. If you would invest 1,135 in Nuveen Global Infrastructure on December 2, 2024 and sell it today you would earn a total of 38.00 from holding Nuveen Global Infrastructure or generate 3.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Nuveen Global Infrastructure vs. Cohen Steers Global
Performance |
Timeline |
Nuveen Global Infras |
Cohen Steers Global |
Nuveen Global and Cohen Steers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nuveen Global and Cohen Steers
The main advantage of trading using opposite Nuveen Global and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Global 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.Nuveen Global vs. John Hancock Variable | Nuveen Global vs. Eventide Healthcare Life | Nuveen Global vs. Baillie Gifford Health | Nuveen Global vs. Live Oak Health |
Cohen Steers vs. Cohen Steers Global | Cohen Steers vs. Cohen Steers Real | Cohen Steers vs. Cohen Steers International | Cohen Steers vs. Nuveen Global Infrastructure |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Transaction History View history of all your transactions and understand their impact on performance | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |