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
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and Pgim is 0.77. 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 4.85 times less return on investment than Pgim Global. But when comparing it to its historical volatility, Cohen Steers Limited is 1.53 times less risky than Pgim Global. It trades about 0.06 of its potential returns per unit of risk. Pgim Global High is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,233 in Pgim Global High on December 26, 2024 and sell it today you would earn a total of 130.00 from holding Pgim Global High or generate 10.54% 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
Performance |
Timeline |
Cohen Steers Limited |
Pgim Global High |
Cohen Steers and Pgim Global Volatility Contrast
Predicted Return Density |
Returns |
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.Cohen Steers vs. Tekla Healthcare Investors | Cohen Steers vs. Tekla Healthcare Opportunities | Cohen Steers vs. Eaton Vance Tax | Cohen Steers vs. Tekla World Healthcare |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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