Correlation Between Nuveen Preferred and Cohen Steers

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

Diversification Opportunities for Nuveen Preferred and Cohen Steers

-0.32

Correlation Coefficient

Nuveen Preferred  Cohen Steers

Very good diversification

The 3 months correlation between Nuveen and Cohen is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Preferred Securites and Cohen Steers Reit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Reit and Nuveen Preferred 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 Preferred Securites 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 Reit has no effect on the direction of Nuveen Preferred i.e., Nuveen Preferred and Cohen Steers go up and down completely randomly.

Pair Corralation between Nuveen Preferred and Cohen Steers

If you would invest  2,095  in Cohen Steers Reit on October 23, 2024 and sell it today you would earn a total of  18.00  from holding Cohen Steers Reit or generate 0.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.56%
Values	Daily Returns

Nuveen Preferred Securites  vs.  Cohen Steers Reit

Nuveen Preferred Sec

Risk-Adjusted Performance

0 of 100

Very Weak

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

Cohen Steers Reit

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cohen Steers Reit has generated negative risk-adjusted returns adding no value to fund investors. Even with latest fragile performance, the Fund's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the fund retail investors.

Pair Trading with Nuveen Preferred and Cohen Steers

The main advantage of trading using opposite Nuveen Preferred and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Preferred 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 Nuveen Preferred Securites and Cohen Steers Reit 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..