Correlation Between Cohen Steers and Blackrock Debt

Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Blackrock Debt 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 Blackrock Debt 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 Blackrock Debt Strategies, you can compare the effects of market volatilities on Cohen Steers and Blackrock Debt 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 Blackrock Debt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Blackrock Debt.

Diversification Opportunities for Cohen Steers and Blackrock Debt

0.29

Correlation Coefficient

Cohen Steers  Blackrock Debt

Modest diversification

The 3 months correlation between Cohen and Blackrock is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Closed and Blackrock Debt Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Debt Strategies 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 Blackrock Debt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Debt Strategies has no effect on the direction of Cohen Steers i.e., Cohen Steers and Blackrock Debt go up and down completely randomly.

Pair Corralation between Cohen Steers and Blackrock Debt

Considering the 90-day investment horizon Cohen Steers Closed is expected to under-perform the Blackrock Debt. In addition to that, Cohen Steers is 1.68 times more volatile than Blackrock Debt Strategies. It trades about -0.04 of its total potential returns per unit of risk. Blackrock Debt Strategies is currently generating about 0.0 per unit of volatility. If you would invest  1,057  in Blackrock Debt Strategies on December 25, 2024 and sell it today you would lose (1.00) from holding Blackrock Debt Strategies or give up 0.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Cohen Steers Closed  vs.  Blackrock Debt Strategies

Cohen Steers Closed

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cohen Steers Closed has generated negative risk-adjusted returns adding no value to fund investors. 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.

Blackrock Debt Strategies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackrock Debt Strategies has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable basic indicators, Blackrock Debt is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Cohen Steers and Blackrock Debt

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

The idea behind Cohen Steers Closed and Blackrock Debt Strategies 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.