Correlation Between Nuveen Arizona and Cohen Steers

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

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

Diversification Opportunities for Nuveen Arizona and Cohen Steers

0.71

Correlation Coefficient

Nuveen Arizona  Cohen Steers

Poor diversification

The 3 months correlation between Nuveen and Cohen is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Arizona Quality and Cohen Steers Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Closed and Nuveen Arizona 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 Nuveen Arizona Quality 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 Closed has no effect on the direction of Nuveen Arizona i.e., Nuveen Arizona and Cohen Steers go up and down completely randomly.

Pair Corralation between Nuveen Arizona and Cohen Steers

Considering the 90-day investment horizon Nuveen Arizona is expected to generate 6.01 times less return on investment than Cohen Steers. In addition to that, Nuveen Arizona is 1.02 times more volatile than Cohen Steers Closed. It trades about 0.03 of its total potential returns per unit of risk. Cohen Steers Closed is currently generating about 0.17 per unit of volatility. If you would invest  1,277  in Cohen Steers Closed on September 14, 2024 and sell it today you would earn a total of  28.00  from holding Cohen Steers Closed or generate 2.19% return on investment over 90 days.

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

Nuveen Arizona Quality  vs.  Cohen Steers Closed

Nuveen Arizona Quality

Risk-Adjusted Performance

7 of 100

OK

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

Cohen Steers Closed

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Steers Closed are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable basic indicators, Cohen Steers is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Nuveen Arizona and Cohen Steers

The main advantage of trading using opposite Nuveen Arizona and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Arizona 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 Nuveen Arizona Quality and Cohen Steers Closed 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.