Correlation Between Growth Fund and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Growth Fund 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 Growth Fund and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Cohen Steers Infrastructure, you can compare the effects of market volatilities on Growth Fund 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 Growth Fund with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Cohen Steers.
Diversification Opportunities for Growth Fund and Cohen Steers
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Growth and Cohen is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Cohen Steers Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Infrast and Growth Fund 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 Growth Fund Of 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 Infrast has no effect on the direction of Growth Fund i.e., Growth Fund and Cohen Steers go up and down completely randomly.
Pair Corralation between Growth Fund and Cohen Steers
Assuming the 90 days horizon Growth Fund Of is expected to under-perform the Cohen Steers. But the mutual fund apears to be less risky and, when comparing its historical volatility, Growth Fund Of is 1.12 times less risky than Cohen Steers. The mutual fund trades about -0.36 of its potential returns per unit of risk. The Cohen Steers Infrastructure is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 2,263 in Cohen Steers Infrastructure on January 21, 2024 and sell it today you would lose (63.00) from holding Cohen Steers Infrastructure or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. Cohen Steers Infrastructure
Performance |
| Timeline |
| Growth Fund |
| Cohen Steers Infrast |
Growth Fund and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Cohen Steers
The main advantage of trading using opposite Growth Fund and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund 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.| Growth Fund vs. Income Fund Of | Growth Fund vs. New World Fund | Growth Fund vs. American Mutual Fund | Growth Fund vs. American Mutual Fund |
| Cohen Steers vs. Vanguard Total Stock | Cohen Steers vs. Vanguard 500 Index | Cohen Steers vs. Vanguard Total Stock | Cohen Steers vs. Vanguard Total Stock |
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 CEOs Directory module to screen CEOs from public companies around the world.
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