Correlation Between Nuveen Real and Cohen Steers

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

Diversification Opportunities for Nuveen Real and Cohen Steers

-0.08

Correlation Coefficient

Nuveen Real  Cohen Steers

Good diversification

The 3 months correlation between Nuveen and Cohen is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Real Estate 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 Real 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 Real Estate 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 Real i.e., Nuveen Real and Cohen Steers go up and down completely randomly.

Pair Corralation between Nuveen Real and Cohen Steers

Considering the 90-day investment horizon Nuveen Real Estate is expected to generate 1.04 times more return on investment than Cohen Steers. However, Nuveen Real is 1.04 times more volatile than Cohen Steers Reit. It trades about 0.01 of its potential returns per unit of risk. Cohen Steers Reit is currently generating about -0.12 per unit of risk. If you would invest  923.00  in Nuveen Real Estate on September 14, 2024 and sell it today you would earn a total of  0.00  from holding Nuveen Real Estate or generate 0.0% return on investment over 90 days.

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

Nuveen Real Estate  vs.  Cohen Steers Reit

Nuveen Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuveen Real Estate has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable basic indicators, Nuveen Real 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 Real and Cohen Steers

The main advantage of trading using opposite Nuveen Real and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Real 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 Real Estate 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.