Correlation Between Cohen Steers and Platinum Asia

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

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

Diversification Opportunities for Cohen Steers and Platinum Asia

0.0

Correlation Coefficient

Cohen Steers  Platinum Asia

Pay attention - limited upside

The 3 months correlation between Cohen and Platinum is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Reit and Platinum Asia Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Asia Investments 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 Reit are associated (or correlated) with Platinum Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Asia Investments has no effect on the direction of Cohen Steers i.e., Cohen Steers and Platinum Asia go up and down completely randomly.

Pair Corralation between Cohen Steers and Platinum Asia

Considering the 90-day investment horizon Cohen Steers Reit is expected to generate 1.66 times more return on investment than Platinum Asia. However, Cohen Steers is 1.66 times more volatile than Platinum Asia Investments. It trades about 0.02 of its potential returns per unit of risk. Platinum Asia Investments is currently generating about 0.02 per unit of risk. If you would invest  2,300  in Cohen Steers Reit on September 3, 2024 and sell it today you would earn a total of  31.00  from holding Cohen Steers Reit or generate 1.35% return on investment over 90 days.

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

Cohen Steers Reit  vs.  Platinum Asia Investments

Cohen Steers Reit

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Steers Reit are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively invariable basic indicators, Cohen Steers is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Platinum Asia Investments

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Platinum Asia Investments are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. Despite fairly strong basic indicators, Platinum Asia is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Cohen Steers and Platinum Asia

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

The idea behind Cohen Steers Reit and Platinum Asia Investments 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.