Correlation Between Cohen Steers and Calamos Strategic

Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Calamos 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 Calamos Strategic 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 Calamos Strategic Total, you can compare the effects of market volatilities on Cohen Steers and Calamos 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 Calamos Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Calamos Strategic.

Diversification Opportunities for Cohen Steers and Calamos Strategic

-0.16

Correlation Coefficient

Cohen Steers  Calamos Strategic

Good diversification

The 3 months correlation between Cohen and Calamos is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Reit and Calamos Strategic Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Strategic Total 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 Calamos Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Strategic Total has no effect on the direction of Cohen Steers i.e., Cohen Steers and Calamos Strategic go up and down completely randomly.

Pair Corralation between Cohen Steers and Calamos Strategic

Considering the 90-day investment horizon Cohen Steers Reit is expected to generate 0.84 times more return on investment than Calamos Strategic. However, Cohen Steers Reit is 1.18 times less risky than Calamos Strategic. It trades about 0.11 of its potential returns per unit of risk. Calamos Strategic Total is currently generating about -0.1 per unit of risk. If you would invest  2,078  in Cohen Steers Reit on December 25, 2024 and sell it today you would earn a total of  110.00  from holding Cohen Steers Reit or generate 5.29% 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.  Calamos Strategic Total

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 8 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively invariable basic indicators, Cohen Steers is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Calamos Strategic Total

Risk-Adjusted Performance

Very Weak

Over the last 90 days Calamos Strategic Total has generated negative risk-adjusted returns adding no value to fund investors. Even with latest inconsistent performance, the Fund's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the fund retail investors.

Pair Trading with Cohen Steers and Calamos Strategic

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

The idea behind Cohen Steers Reit and Calamos Strategic Total 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.