Correlation Between Cohen Steers and Allianzgi Diversified

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

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

Diversification Opportunities for Cohen Steers and Allianzgi Diversified

-0.15

Correlation Coefficient

Cohen Steers  Allianzgi Diversified

Good diversification

The 3 months correlation between Cohen and Allianzgi is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Reit and Allianzgi Diversified Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Diversified 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 Reit are associated (or correlated) with Allianzgi Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Diversified has no effect on the direction of Cohen Steers i.e., Cohen Steers and Allianzgi Diversified go up and down completely randomly.

Pair Corralation between Cohen Steers and Allianzgi Diversified

Considering the 90-day investment horizon Cohen Steers Reit is expected to generate 0.92 times more return on investment than Allianzgi Diversified. However, Cohen Steers Reit is 1.09 times less risky than Allianzgi Diversified. It trades about 0.13 of its potential returns per unit of risk. Allianzgi Diversified Income is currently generating about -0.1 per unit of risk. If you would invest  2,039  in Cohen Steers Reit on December 28, 2024 and sell it today you would earn a total of  138.00  from holding Cohen Steers Reit or generate 6.77% return on investment over 90 days.

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

Cohen Steers Reit  vs.  Allianzgi Diversified Income

Cohen Steers Reit

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Steers Reit are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively fragile basic indicators, Cohen Steers may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Allianzgi Diversified

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allianzgi Diversified Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly stable fundamental indicators, Allianzgi Diversified is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Cohen Steers and Allianzgi Diversified

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

The idea behind Cohen Steers Reit and Allianzgi Diversified Income 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.