Correlation Between Europacific Growth and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Europacific Growth 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 Europacific Growth and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europacific Growth Fund and Cohen Steers Infrastructure, you can compare the effects of market volatilities on Europacific Growth 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 Europacific Growth with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europacific Growth and Cohen Steers.
Diversification Opportunities for Europacific Growth and Cohen Steers
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Europacific and Cohen is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Europacific Growth Fund 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 Europacific Growth 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 Europacific Growth Fund 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 Europacific Growth i.e., Europacific Growth and Cohen Steers go up and down completely randomly.
Pair Corralation between Europacific Growth and Cohen Steers
Assuming the 90 days horizon Europacific Growth Fund is expected to under-perform the Cohen Steers. But the mutual fund apears to be less risky and, when comparing its historical volatility, Europacific Growth Fund is 1.23 times less risky than Cohen Steers. The mutual fund trades about -0.19 of its potential returns per unit of risk. The Cohen Steers Infrastructure is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 2,287 in Cohen Steers Infrastructure on January 27, 2024 and sell it today you would lose (32.00) from holding Cohen Steers Infrastructure or give up 1.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Europacific Growth Fund vs. Cohen Steers Infrastructure
Performance |
| Timeline |
| Europacific Growth |
| Cohen Steers Infrast |
Europacific Growth and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europacific Growth and Cohen Steers
The main advantage of trading using opposite Europacific Growth and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europacific Growth 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.| Europacific Growth vs. Growth Fund Of | Europacific Growth vs. Vanguard Institutional Index | Europacific Growth vs. Vanguard Mid Cap Index | Europacific Growth vs. Washington Mutual Investors |
| Cohen Steers vs. Enhanced Large Pany | Cohen Steers vs. Rational Strategic Allocation | Cohen Steers vs. Tax Managed Large Cap | Cohen Steers vs. Touchstone Large Cap |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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