Correlation Between Cohen Steers and Guggenheim Strategic

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

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

Diversification Opportunities for Cohen Steers and Guggenheim Strategic

0.78

Correlation Coefficient

Cohen Steers  Guggenheim Strategic

Poor diversification

The 3 months correlation between Cohen and Guggenheim is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Total and Guggenheim Strategic Opportuni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Strategic 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 Total are associated (or correlated) with Guggenheim Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Strategic has no effect on the direction of Cohen Steers i.e., Cohen Steers and Guggenheim Strategic go up and down completely randomly.

Pair Corralation between Cohen Steers and Guggenheim Strategic

Considering the 90-day investment horizon Cohen Steers Total is expected to generate 1.42 times more return on investment than Guggenheim Strategic. However, Cohen Steers is 1.42 times more volatile than Guggenheim Strategic Opportunities. It trades about 0.12 of its potential returns per unit of risk. Guggenheim Strategic Opportunities is currently generating about 0.17 per unit of risk. If you would invest  1,130  in Cohen Steers Total on December 29, 2024 and sell it today you would earn a total of  68.00  from holding Cohen Steers Total or generate 6.02% return on investment over 90 days.

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

Cohen Steers Total  vs.  Guggenheim Strategic Opportuni

Cohen Steers Total

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Steers Total are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. Despite fairly strong technical and fundamental indicators, Cohen Steers is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Guggenheim Strategic

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Guggenheim Strategic Opportunities are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Guggenheim Strategic is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Cohen Steers and Guggenheim Strategic

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

The idea behind Cohen Steers Total and Guggenheim Strategic Opportunities 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.

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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.