Correlation Between Upright Growth and Cohen Steers

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

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

Diversification Opportunities for Upright Growth and Cohen Steers

-0.56

Correlation Coefficient

Upright Growth  Cohen Steers

Excellent diversification

The 3 months correlation between Upright and Cohen is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Upright Growth Income and Cohen Steers International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Interna and Upright Growth 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 Upright Growth Income 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 Interna has no effect on the direction of Upright Growth i.e., Upright Growth and Cohen Steers go up and down completely randomly.

Pair Corralation between Upright Growth and Cohen Steers

Assuming the 90 days horizon Upright Growth Income is expected to generate 2.11 times more return on investment than Cohen Steers. However, Upright Growth is 2.11 times more volatile than Cohen Steers International. It trades about 0.1 of its potential returns per unit of risk. Cohen Steers International is currently generating about -0.02 per unit of risk. If you would invest  1,402  in Upright Growth Income on October 24, 2024 and sell it today you would earn a total of  704.00  from holding Upright Growth Income or generate 50.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.6%
Values	Daily Returns

Upright Growth Income  vs.  Cohen Steers International

Upright Growth Income

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Upright Growth Income are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Upright Growth showed solid returns over the last few months and may actually be approaching a breakup point.

Cohen Steers Interna

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cohen Steers International has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Upright Growth and Cohen Steers

The main advantage of trading using opposite Upright Growth and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upright Growth 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 Upright Growth Income and Cohen Steers International 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.