Correlation Between Columbia Seligman and Cohen Steers

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

By analyzing existing cross correlation between Columbia Seligman Premium and Cohen Steers Reit, you can compare the effects of market volatilities on Columbia Seligman and Cohen Steers 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 Columbia Seligman with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Seligman and Cohen Steers.

Diversification Opportunities for Columbia Seligman and Cohen Steers

-0.31

Correlation Coefficient

Columbia Seligman  Cohen Steers

Very good diversification

The 3 months correlation between Columbia and Cohen is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Seligman Premium and Cohen Steers Reit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Reit and Columbia Seligman 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 Columbia Seligman Premium are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Reit has no effect on the direction of Columbia Seligman i.e., Columbia Seligman and Cohen Steers go up and down completely randomly.

Pair Corralation between Columbia Seligman and Cohen Steers

Considering the 90-day investment horizon Columbia Seligman Premium is expected to under-perform the Cohen Steers. In addition to that, Columbia Seligman is 1.57 times more volatile than Cohen Steers Reit. It trades about -0.13 of its total potential returns per unit of risk. Cohen Steers Reit is currently generating about 0.15 per unit of volatility. If you would invest  2,039  in Cohen Steers Reit on December 28, 2024 and sell it today you would earn a total of  155.00  from holding Cohen Steers Reit or generate 7.6% return on investment over 90 days.

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

Columbia Seligman Premium  vs.  Cohen Steers Reit

Columbia Seligman Premium

Risk-Adjusted Performance

Very Weak

Over the last 90 days Columbia Seligman Premium has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Etf's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the ETF venture institutional investors.

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 11 (%) 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.

Pair Trading with Columbia Seligman and Cohen Steers

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

The idea behind Columbia Seligman Premium and Cohen Steers Reit 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..