Correlation Between Cohen Steers and Gabelli Utility

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

Diversification Opportunities for Cohen Steers and Gabelli Utility

0.08

Correlation Coefficient

Cohen Steers  Gabelli Utility

Significant diversification

The 3 months correlation between Cohen and Gabelli is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Reit and Gabelli Utility Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Utility Closed 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 Gabelli Utility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Utility Closed has no effect on the direction of Cohen Steers i.e., Cohen Steers and Gabelli Utility go up and down completely randomly.

Pair Corralation between Cohen Steers and Gabelli Utility

Considering the 90-day investment horizon Cohen Steers Reit is expected to generate 0.73 times more return on investment than Gabelli Utility. However, Cohen Steers Reit is 1.37 times less risky than Gabelli Utility. It trades about -0.01 of its potential returns per unit of risk. Gabelli Utility Closed is currently generating about -0.09 per unit of risk. If you would invest  2,311  in Cohen Steers Reit on September 5, 2024 and sell it today you would lose (18.00) from holding Cohen Steers Reit or give up 0.78% of portfolio value over 90 days.

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

Cohen Steers Reit  vs.  Gabelli Utility Closed

Cohen Steers Reit

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cohen Steers Reit has generated negative risk-adjusted returns adding no value to fund investors. 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.

Gabelli Utility Closed

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gabelli Utility Closed has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the fund private investors.

Pair Trading with Cohen Steers and Gabelli Utility

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

The idea behind Cohen Steers Reit and Gabelli Utility 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.