Correlation Between ClimateRock and Cohen Steers

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

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

Diversification Opportunities for ClimateRock and Cohen Steers

-0.09

Correlation Coefficient

ClimateRock  Cohen Steers

Good diversification

The 3 months correlation between ClimateRock and Cohen is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding ClimateRock Class A and Cohen Steers Tax Advantaged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Tax and ClimateRock 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 ClimateRock Class A 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 Tax has no effect on the direction of ClimateRock i.e., ClimateRock and Cohen Steers go up and down completely randomly.

Pair Corralation between ClimateRock and Cohen Steers

Given the investment horizon of 90 days ClimateRock Class A is expected to generate 0.11 times more return on investment than Cohen Steers. However, ClimateRock Class A is 8.92 times less risky than Cohen Steers. It trades about 0.2 of its potential returns per unit of risk. Cohen Steers Tax Advantaged is currently generating about 0.0 per unit of risk. If you would invest  1,155  in ClimateRock Class A on August 30, 2024 and sell it today you would earn a total of  10.00  from holding ClimateRock Class A or generate 0.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

ClimateRock Class A  vs.  Cohen Steers Tax Advantaged

ClimateRock Class

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ClimateRock Class A are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, ClimateRock is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Cohen Steers Tax

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cohen Steers Tax Advantaged has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Cohen Steers is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ClimateRock and Cohen Steers

The main advantage of trading using opposite ClimateRock and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ClimateRock 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 ClimateRock Class A and Cohen Steers Tax Advantaged 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.