Correlation Between Small Pany and Cohen Steers

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

By analyzing existing cross correlation between Small Pany Growth and Cohen Steers Intl, you can compare the effects of market volatilities on Small Pany and Cohen Steers 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 Small Pany with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Small Pany and Cohen Steers.

Diversification Opportunities for Small Pany and Cohen Steers

-0.21

Correlation Coefficient

Small Pany  Cohen Steers

Very good diversification

The 3 months correlation between Small and Cohen is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Small Pany Growth and Cohen Steers Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Intl and Small Pany 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 Small Pany Growth are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Intl has no effect on the direction of Small Pany i.e., Small Pany and Cohen Steers go up and down completely randomly.

Pair Corralation between Small Pany and Cohen Steers

Assuming the 90 days horizon Small Pany Growth is expected to under-perform the Cohen Steers. In addition to that, Small Pany is 2.84 times more volatile than Cohen Steers Intl. It trades about -0.05 of its total potential returns per unit of risk. Cohen Steers Intl is currently generating about 0.08 per unit of volatility. If you would invest  788.00  in Cohen Steers Intl on December 28, 2024 and sell it today you would earn a total of  30.00  from holding Cohen Steers Intl or generate 3.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Small Pany Growth  vs.  Cohen Steers Intl

Small Pany Growth

Risk-Adjusted Performance

Very Weak

Over the last 90 days Small Pany Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Cohen Steers Intl

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Steers Intl are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Cohen Steers is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Small Pany and Cohen Steers

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

The idea behind Small Pany Growth and Cohen Steers Intl 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.