Correlation Between Ab Select and Cohen Steers

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

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

Diversification Opportunities for Ab Select and Cohen Steers

0.98

Correlation Coefficient

Ab Select  Cohen Steers

Almost no diversification

The 3 months correlation between AUUIX and Cohen is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Ab Select Equity and Cohen Steers Prfrd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Prfrd and Ab Select 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 Ab Select Equity 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 Prfrd has no effect on the direction of Ab Select i.e., Ab Select and Cohen Steers go up and down completely randomly.

Pair Corralation between Ab Select and Cohen Steers

Assuming the 90 days horizon Ab Select Equity is expected to under-perform the Cohen Steers. In addition to that, Ab Select is 4.19 times more volatile than Cohen Steers Prfrd. It trades about -0.05 of its total potential returns per unit of risk. Cohen Steers Prfrd is currently generating about 0.03 per unit of volatility. If you would invest  1,244  in Cohen Steers Prfrd on May 4, 2025 and sell it today you would earn a total of  1.00  from holding Cohen Steers Prfrd or generate 0.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Ab Select Equity  vs.  Cohen Steers Prfrd

Ab Select Equity

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ab Select Equity are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Ab Select may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Cohen Steers Prfrd

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Steers Prfrd are ranked lower than 36 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward 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 Ab Select and Cohen Steers

The main advantage of trading using opposite Ab Select and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Select 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 Ab Select Equity and Cohen Steers Prfrd 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 Transaction History module to view history of all your transactions and understand their impact on performance.