Correlation Between Guggenheim Strategic and Cohen Steers

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

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

Diversification Opportunities for Guggenheim Strategic and Cohen Steers

0.84

Correlation Coefficient

Guggenheim Strategic  Cohen Steers

Very poor diversification

The 3 months correlation between Guggenheim and Cohen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Strategic Opportuni and Cohen Steers Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Closed and Guggenheim Strategic 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 Guggenheim Strategic Opportunities 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 Closed has no effect on the direction of Guggenheim Strategic i.e., Guggenheim Strategic and Cohen Steers go up and down completely randomly.

Pair Corralation between Guggenheim Strategic and Cohen Steers

Considering the 90-day investment horizon Guggenheim Strategic is expected to generate 1.19 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Guggenheim Strategic Opportunities is 1.33 times less risky than Cohen Steers. It trades about 0.17 of its potential returns per unit of risk. Cohen Steers Closed is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,232  in Cohen Steers Closed on September 12, 2024 and sell it today you would earn a total of  83.00  from holding Cohen Steers Closed or generate 6.74% return on investment over 90 days.

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

Guggenheim Strategic Opportuni  vs.  Cohen Steers Closed

Guggenheim Strategic

Risk-Adjusted Performance

13 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Guggenheim Strategic Opportunities are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Guggenheim Strategic is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Cohen Steers Closed

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Steers Closed are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly unsteady basic indicators, Cohen Steers may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Guggenheim Strategic and Cohen Steers

The main advantage of trading using opposite Guggenheim Strategic and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Strategic 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 Guggenheim Strategic Opportunities and Cohen Steers Closed 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.