Correlation Between Cohen Steers and Vanguard Total
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Vanguard Total 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 Vanguard Total 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 Vanguard Total Bond, you can compare the effects of market volatilities on Cohen Steers and Vanguard Total 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 Vanguard Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Vanguard Total.
Diversification Opportunities for Cohen Steers and Vanguard Total
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cohen and Vanguard is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Infrastructure and Vanguard Total Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Total Bond 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 Vanguard Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Total Bond has no effect on the direction of Cohen Steers i.e., Cohen Steers and Vanguard Total go up and down completely randomly.
Pair Corralation between Cohen Steers and Vanguard Total
Assuming the 90 days horizon Cohen Steers Infrastructure is expected to generate 2.33 times more return on investment than Vanguard Total. However, Cohen Steers is 2.33 times more volatile than Vanguard Total Bond. It trades about 0.0 of its potential returns per unit of risk. Vanguard Total Bond is currently generating about -0.07 per unit of risk. If you would invest 2,170 in Cohen Steers Infrastructure on January 20, 2024 and sell it today you would lose (8.00) from holding Cohen Steers Infrastructure or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Infrastructure vs. Vanguard Total Bond
Performance |
| Timeline |
| Cohen Steers Infrast |
| Vanguard Total Bond |
Cohen Steers and Vanguard Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Vanguard Total
The main advantage of trading using opposite Cohen Steers and Vanguard Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Vanguard Total 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 Vanguard Total will offset losses from the drop in Vanguard Total's long position.| Cohen Steers vs. Hunter Small Cap | Cohen Steers vs. Eagle Small Cap | Cohen Steers vs. Lebenthal Lisanti Small | Cohen Steers vs. Ab Small Cap |
| Vanguard Total vs. Vanguard Total International | Vanguard Total vs. Vanguard Total Stock | Vanguard Total vs. Vanguard Small Cap Index | Vanguard Total vs. Vanguard 500 Index |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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