Correlation Between Cohen and Cohen Steers

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

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

Diversification Opportunities for Cohen and Cohen Steers

0.36

Correlation Coefficient

Cohen  Cohen Steers

Weak diversification

The 3 months correlation between Cohen and Cohen is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Cohen And Steers 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 Cohen 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 And Steers 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 Cohen i.e., Cohen and Cohen Steers go up and down completely randomly.

Pair Corralation between Cohen and Cohen Steers

Considering the 90-day investment horizon Cohen And Steers is expected to generate 0.65 times more return on investment than Cohen Steers. However, Cohen And Steers is 1.54 times less risky than Cohen Steers. It trades about 0.29 of its potential returns per unit of risk. Cohen Steers Reit is currently generating about 0.1 per unit of risk. If you would invest  2,497  in Cohen And Steers on September 1, 2024 and sell it today you would earn a total of  125.00  from holding Cohen And Steers or generate 5.01% return on investment over 90 days.

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

Cohen And Steers  vs.  Cohen Steers Reit

Cohen And Steers

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen And Steers are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly weak basic indicators, Cohen may actually be approaching a critical reversion point that can send shares even higher in December 2024.

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.

Pair Trading with Cohen and Cohen Steers

The main advantage of trading using opposite Cohen and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen 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 Cohen And Steers 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.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.