Correlation Between Cohen Steers and Growth Fund
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Growth Fund 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 Cohen Steers and Growth Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Infrastructure and Growth Fund Of, you can compare the effects of market volatilities on Cohen Steers and Growth Fund 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 Cohen Steers with a short position of Growth Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Growth Fund.
Diversification Opportunities for Cohen Steers and Growth Fund
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and Growth is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Infrastructure and Growth Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Fund and Cohen Steers 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 Cohen Steers Infrastructure are associated (or correlated) with Growth Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Fund has no effect on the direction of Cohen Steers i.e., Cohen Steers and Growth Fund go up and down completely randomly.
Pair Corralation between Cohen Steers and Growth Fund
Assuming the 90 days horizon Cohen Steers Infrastructure is expected to generate 1.01 times more return on investment than Growth Fund. However, Cohen Steers is 1.01 times more volatile than Growth Fund Of. It trades about -0.03 of its potential returns per unit of risk. Growth Fund Of is currently generating about -0.16 per unit of risk. 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Infrastructure vs. Growth Fund Of
Performance |
| Timeline |
| Cohen Steers Infrast |
| Growth Fund |
Cohen Steers and Growth Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Growth Fund
The main advantage of trading using opposite Cohen Steers and Growth Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Growth Fund 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 Growth Fund will offset losses from the drop in Growth Fund's long position.| Cohen Steers vs. Vanguard Total Stock | Cohen Steers vs. Vanguard 500 Index | Cohen Steers vs. Vanguard Total Stock | Cohen Steers vs. Vanguard Total Stock |
| Growth Fund vs. Growth Fund Of | Growth Fund vs. Growth Fund Of | Growth Fund vs. Growth Fund Of | Growth Fund vs. Growth Fund Of |
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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