Correlation Between Cohen Steers and Eaton Vance

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

By analyzing existing cross correlation between Cohen Steers Limited and Eaton Vance New, you can compare the effects of market volatilities on Cohen Steers and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Eaton Vance.

Diversification Opportunities for Cohen Steers and Eaton Vance

0.41

Correlation Coefficient

Cohen Steers  Eaton Vance

Very weak diversification

The 3 months correlation between Cohen and Eaton is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Limited and Eaton Vance New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance New 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 Limited are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance New has no effect on the direction of Cohen Steers i.e., Cohen Steers and Eaton Vance go up and down completely randomly.

Pair Corralation between Cohen Steers and Eaton Vance

Considering the 90-day investment horizon Cohen Steers Limited is expected to generate 0.91 times more return on investment than Eaton Vance. However, Cohen Steers Limited is 1.1 times less risky than Eaton Vance. It trades about 0.05 of its potential returns per unit of risk. Eaton Vance New is currently generating about 0.03 per unit of risk. If you would invest  1,723  in Cohen Steers Limited on October 7, 2024 and sell it today you would earn a total of  338.00  from holding Cohen Steers Limited or generate 19.62% return on investment over 90 days.

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

Cohen Steers Limited  vs.  Eaton Vance New

Cohen Steers Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cohen Steers Limited has generated negative risk-adjusted returns adding no value to fund investors. Even with relatively invariable fundamental indicators, Cohen Steers is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Eaton Vance New

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance New are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Eaton Vance is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cohen Steers and Eaton Vance

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

The idea behind Cohen Steers Limited and Eaton Vance New 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.