Correlation Between Cohen Steers and Pgim Global

Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Pgim Global 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 Pgim Global 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 Pgim Global High, you can compare the effects of market volatilities on Cohen Steers and Pgim Global 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 Pgim Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Pgim Global.

Diversification Opportunities for Cohen Steers and Pgim Global

0.6

Correlation Coefficient

Cohen Steers  Pgim Global

Poor diversification

The 3 months correlation between Cohen and Pgim is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Limited and Pgim Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Global High 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 Pgim Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Global High has no effect on the direction of Cohen Steers i.e., Cohen Steers and Pgim Global go up and down completely randomly.

Pair Corralation between Cohen Steers and Pgim Global

Considering the 90-day investment horizon Cohen Steers is expected to generate 10.1 times less return on investment than Pgim Global. But when comparing it to its historical volatility, Cohen Steers Limited is 1.32 times less risky than Pgim Global. It trades about 0.01 of its potential returns per unit of risk. Pgim Global High is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,265  in Pgim Global High on December 3, 2024 and sell it today you would earn a total of  69.00  from holding Pgim Global High or generate 5.45% return on investment over 90 days.

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

Cohen Steers Limited  vs.  Pgim Global High

Cohen Steers Limited

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Steers Limited are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. 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.

Pgim Global High

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pgim Global High are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Pgim Global 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 Pgim Global

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

The idea behind Cohen Steers Limited and Pgim Global High 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.