Correlation Between Lord Abbett and Cohen Steers

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

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

Diversification Opportunities for Lord Abbett and Cohen Steers

-0.25

Correlation Coefficient

Lord Abbett  Cohen Steers

Very good diversification

The 3 months correlation between Lord and Cohen is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Affiliated and Cohen Steers Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Realty and Lord Abbett 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 Lord Abbett Affiliated 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 Realty has no effect on the direction of Lord Abbett i.e., Lord Abbett and Cohen Steers go up and down completely randomly.

Pair Corralation between Lord Abbett and Cohen Steers

Assuming the 90 days horizon Lord Abbett Affiliated is expected to under-perform the Cohen Steers. In addition to that, Lord Abbett is 1.53 times more volatile than Cohen Steers Realty. It trades about -0.25 of its total potential returns per unit of risk. Cohen Steers Realty is currently generating about -0.16 per unit of volatility. If you would invest  7,018  in Cohen Steers Realty on September 17, 2024 and sell it today you would lose (152.00) from holding Cohen Steers Realty or give up 2.17% of portfolio value over 90 days.

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

Lord Abbett Affiliated  vs.  Cohen Steers Realty

Lord Abbett Affiliated

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lord Abbett Affiliated are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Lord Abbett is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Cohen Steers Realty

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cohen Steers Realty has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Cohen Steers is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Lord Abbett and Cohen Steers

The main advantage of trading using opposite Lord Abbett and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett 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 Lord Abbett Affiliated and Cohen Steers Realty 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.