Correlation Between Kinaxis and Cohen Steers
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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.65% |
Values | Daily Returns |
Kinaxis vs. Cohen Steers Infrastructure
Performance |
Timeline |
Kinaxis |
Cohen Steers Infrast |
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.Kinaxis vs. Elixxer | Kinaxis vs. Eros Resources Corp | Kinaxis vs. Cielo Waste Solutions | Kinaxis vs. MustGrow Biologics Corp |
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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.
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