Correlation Between Cohen Steers and Barings High

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

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

Diversification Opportunities for Cohen Steers and Barings High

0.87

Correlation Coefficient

Cohen Steers  Barings High

Very poor diversification

The 3 months correlation between Cohen and Barings is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Low and Barings High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings High Yield 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 Low are associated (or correlated) with Barings High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings High Yield has no effect on the direction of Cohen Steers i.e., Cohen Steers and Barings High go up and down completely randomly.

Pair Corralation between Cohen Steers and Barings High

Assuming the 90 days horizon Cohen Steers Low is expected to generate 0.42 times more return on investment than Barings High. However, Cohen Steers Low is 2.39 times less risky than Barings High. It trades about 0.33 of its potential returns per unit of risk. Barings High Yield is currently generating about 0.09 per unit of risk. If you would invest  934.00  in Cohen Steers Low on December 20, 2024 and sell it today you would earn a total of  14.00  from holding Cohen Steers Low or generate 1.5% return on investment over 90 days.

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

Cohen Steers Low  vs.  Barings High Yield

Cohen Steers Low

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Steers Low are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Cohen Steers is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Barings High Yield

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Barings High Yield are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Barings High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cohen Steers and Barings High

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

The idea behind Cohen Steers Low and Barings High Yield 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .