Correlation Between Cohen Steers and Gabelli Equity

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

Diversification Opportunities for Cohen Steers and Gabelli Equity

0.54

Correlation Coefficient

Cohen Steers  Gabelli Equity

Very weak diversification

The 3 months correlation between Cohen and Gabelli is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Qualityome and Gabelli Equity Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Equity Trust 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 Gabelli Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Equity Trust has no effect on the direction of Cohen Steers i.e., Cohen Steers and Gabelli Equity go up and down completely randomly.

Pair Corralation between Cohen Steers and Gabelli Equity

Considering the 90-day investment horizon Cohen Steers is expected to generate 1.9 times less return on investment than Gabelli Equity. In addition to that, Cohen Steers is 1.14 times more volatile than Gabelli Equity Trust. It trades about 0.05 of its total potential returns per unit of risk. Gabelli Equity Trust is currently generating about 0.11 per unit of volatility. If you would invest  522.00  in Gabelli Equity Trust on December 27, 2024 and sell it today you would earn a total of  32.00  from holding Gabelli Equity Trust or generate 6.13% return on investment over 90 days.

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

Cohen Steers Qualityome  vs.  Gabelli Equity Trust

Cohen Steers Qualityome

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Steers Qualityome are ranked lower than 4 (%) 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.

Gabelli Equity Trust

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Equity Trust are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat uncertain basic indicators, Gabelli Equity may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Cohen Steers and Gabelli Equity

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

The idea behind Cohen Steers Qualityome and Gabelli Equity Trust 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.