Correlation Between Ingersoll Rand and Cohen Steers

Can any of the company-specific risk be diversified away by investing in both Ingersoll Rand 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 Ingersoll Rand and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ingersoll Rand and Cohen Steers Infrastructure, you can compare the effects of market volatilities on Ingersoll Rand 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 Ingersoll Rand with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingersoll Rand and Cohen Steers.

Diversification Opportunities for Ingersoll Rand and Cohen Steers

0.0

Correlation Coefficient

Ingersoll Rand  Cohen Steers

Pay attention - limited upside

The 3 months correlation between Ingersoll and Cohen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ingersoll Rand 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 Ingersoll Rand 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 Ingersoll Rand 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 Ingersoll Rand i.e., Ingersoll Rand and Cohen Steers go up and down completely randomly.

Pair Corralation between Ingersoll Rand and Cohen Steers

If you would invest (100.00) in Cohen Steers Infrastructure on January 31, 2024 and sell it today you would earn a total of  100.00  from holding Cohen Steers Infrastructure or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Ingersoll Rand  vs.  Cohen Steers Infrastructure

Ingersoll Rand

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ingersoll Rand has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Ingersoll Rand is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Cohen Steers Infrast

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Steers Infrastructure are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. 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.

Pair Trading with Ingersoll Rand and Cohen Steers

The main advantage of trading using opposite Ingersoll Rand and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingersoll Rand 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 Ingersoll Rand 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.

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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.