Correlation Between Kinaxis and Cohen Steers

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Kinaxis 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 Kinaxis and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinaxis and Cohen Steers Infrastructure, you can compare the effects of market volatilities on Kinaxis 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 Kinaxis with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinaxis and Cohen Steers.

Diversification Opportunities for Kinaxis and Cohen Steers

-0.75
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Kinaxis and Cohen is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kinaxis 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 Kinaxis 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 Kinaxis 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 Kinaxis i.e., Kinaxis and Cohen Steers go up and down completely randomly.

Pair Corralation between Kinaxis and Cohen Steers

Assuming the 90 days trading horizon Kinaxis is expected to generate 5.04 times less return on investment than Cohen Steers. In addition to that, Kinaxis is 4.67 times more volatile than Cohen Steers Infrastructure. It trades about 0.01 of its total potential returns per unit of risk. Cohen Steers Infrastructure is currently generating about 0.27 per unit of volatility. If you would invest  2,202  in Cohen Steers Infrastructure on December 30, 2023 and sell it today you would earn a total of  85.00  from holding Cohen Steers Infrastructure or generate 3.86% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy95.65%
ValuesDaily Returns

Kinaxis  vs.  Cohen Steers Infrastructure

 Performance 
       Timeline  
Kinaxis 

Risk-Adjusted Performance

5 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Kinaxis are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Kinaxis may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Cohen Steers Infrast 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Cohen Steers Infrastructure has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Cohen Steers is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Kinaxis and Cohen Steers Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kinaxis and Cohen Steers

The main advantage of trading using opposite Kinaxis and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinaxis 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 Kinaxis 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.
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

Other Complementary Tools

Stocks Directory
Find actively traded stocks across global markets
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Equity Valuation
Check real value of public entities based on technical and fundamental data
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences