Correlation Between Cohen Steers and Duff

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

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

Diversification Opportunities for Cohen Steers and Duff

0.61

Correlation Coefficient

Cohen Steers  Duff

Poor diversification

The 3 months correlation between Cohen and Duff is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Qualityome and Duff And Phelps in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duff And Phelps 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 Qualityome are associated (or correlated) with Duff. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duff And Phelps has no effect on the direction of Cohen Steers i.e., Cohen Steers and Duff go up and down completely randomly.

Pair Corralation between Cohen Steers and Duff

Considering the 90-day investment horizon Cohen Steers is expected to generate 1.55 times less return on investment than Duff. In addition to that, Cohen Steers is 1.15 times more volatile than Duff And Phelps. It trades about 0.07 of its total potential returns per unit of risk. Duff And Phelps is currently generating about 0.12 per unit of volatility. If you would invest  1,136  in Duff And Phelps on December 23, 2024 and sell it today you would earn a total of  76.00  from holding Duff And Phelps or generate 6.69% return on investment over 90 days.

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

Cohen Steers Qualityome  vs.  Duff And Phelps

Cohen Steers Qualityome

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Steers Qualityome are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. Despite fairly strong basic indicators, Cohen Steers is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Duff And Phelps

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Duff And Phelps are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly unsteady basic indicators, Duff may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Cohen Steers and Duff

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

The idea behind Cohen Steers Qualityome and Duff And Phelps 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.