Correlation Between Cohen Steers and Pimco New

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

Diversification Opportunities for Cohen Steers and Pimco New

0.84

Correlation Coefficient

Cohen Steers  Pimco New

Very poor diversification

The 3 months correlation between Cohen and Pimco is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Limited and Pimco New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco New York 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 Pimco New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco New York has no effect on the direction of Cohen Steers i.e., Cohen Steers and Pimco New go up and down completely randomly.

Pair Corralation between Cohen Steers and Pimco New

Considering the 90-day investment horizon Cohen Steers Limited is expected to generate 1.21 times more return on investment than Pimco New. However, Cohen Steers is 1.21 times more volatile than Pimco New York. It trades about -0.06 of its potential returns per unit of risk. Pimco New York is currently generating about -0.23 per unit of risk. If you would invest  2,116  in Cohen Steers Limited on October 7, 2024 and sell it today you would lose (55.00) from holding Cohen Steers Limited or give up 2.6% of portfolio value over 90 days.

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

Cohen Steers Limited  vs.  Pimco New York

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.

Pimco New York

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pimco New York has generated negative risk-adjusted returns adding no value to fund investors. Despite latest abnormal performance, the Fund's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the mutual fund stockholders.

Pair Trading with Cohen Steers and Pimco New

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

The idea behind Cohen Steers Limited and Pimco New York 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.