Correlation Between Cohen Steers and Nuveen Senior

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

Diversification Opportunities for Cohen Steers and Nuveen Senior

0.43

Correlation Coefficient

Cohen Steers  Nuveen Senior

Very weak diversification

The 3 months correlation between Cohen and Nuveen is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Closed and Nuveen Senior Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Senior Income 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 Nuveen Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Senior Income has no effect on the direction of Cohen Steers i.e., Cohen Steers and Nuveen Senior go up and down completely randomly.

Pair Corralation between Cohen Steers and Nuveen Senior

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	Weak
Accuracy	0.79%
Values	Daily Returns

Cohen Steers Closed  vs.  Nuveen Senior Income

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.

Nuveen Senior Income

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuveen Senior Income has generated negative risk-adjusted returns adding no value to fund investors. Despite quite persistent basic indicators, Nuveen Senior is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Cohen Steers and Nuveen Senior

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

The idea behind Cohen Steers Closed and Nuveen Senior Income 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.