Correlation Between Cohen Steers and Aberdeen Global

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

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

Diversification Opportunities for Cohen Steers and Aberdeen Global

0.6

Correlation Coefficient

Cohen Steers  Aberdeen Global

Poor diversification

The 3 months correlation between Cohen and Aberdeen is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Closed and Aberdeen Global Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global Dynamic 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 Closed are associated (or correlated) with Aberdeen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Global Dynamic has no effect on the direction of Cohen Steers i.e., Cohen Steers and Aberdeen Global go up and down completely randomly.

Pair Corralation between Cohen Steers and Aberdeen Global

Considering the 90-day investment horizon Cohen Steers Closed is expected to generate 0.63 times more return on investment than Aberdeen Global. However, Cohen Steers Closed is 1.58 times less risky than Aberdeen Global. It trades about 0.15 of its potential returns per unit of risk. Aberdeen Global Dynamic is currently generating about 0.07 per unit of risk. If you would invest  1,128  in Cohen Steers Closed on September 14, 2024 and sell it today you would earn a total of  168.00  from holding Cohen Steers Closed or generate 14.89% return on investment over 90 days.

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

Cohen Steers Closed  vs.  Aberdeen Global Dynamic

Cohen Steers Closed

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Steers Closed are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable basic indicators, Cohen Steers is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Aberdeen Global Dynamic

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Aberdeen Global Dynamic are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather sound technical and fundamental indicators, Aberdeen Global is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Cohen Steers and Aberdeen Global

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

The idea behind Cohen Steers Closed and Aberdeen Global Dynamic 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 Commodity Directory module to find actively traded commodities issued by global exchanges.