Correlation Between GDI Integrated and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both GDI Integrated 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 GDI Integrated and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GDI Integrated and Cohen Steers Infrastructure, you can compare the effects of market volatilities on GDI Integrated 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 GDI Integrated with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of GDI Integrated and Cohen Steers.
Diversification Opportunities for GDI Integrated and Cohen Steers
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GDI and Cohen is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding GDI Integrated 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 GDI Integrated 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 GDI Integrated 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 GDI Integrated i.e., GDI Integrated and Cohen Steers go up and down completely randomly.
Pair Corralation between GDI Integrated and Cohen Steers
Assuming the 90 days trading horizon GDI Integrated is expected to under-perform the Cohen Steers. In addition to that, GDI Integrated is 1.05 times more volatile than Cohen Steers Infrastructure. It trades about -0.22 of its total potential returns per unit of risk. Cohen Steers Infrastructure is currently generating about -0.03 per unit of volatility. If you would invest 2,244 in Cohen Steers Infrastructure on January 26, 2024 and sell it today you would lose (17.00) from holding Cohen Steers Infrastructure or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GDI Integrated vs. Cohen Steers Infrastructure
Performance |
| Timeline |
| GDI Integrated |
| Cohen Steers Infrast |
GDI Integrated and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GDI Integrated and Cohen Steers
The main advantage of trading using opposite GDI Integrated and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GDI Integrated 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 GDI Integrated and Cohen Steers Infrastructure 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.| 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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |