Correlation Between Cohen Steers and Doubleline Emerging

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

By analyzing existing cross correlation between Cohen Steers Global and Doubleline Emerging Markets, you can compare the effects of market volatilities on Cohen Steers and Doubleline Emerging 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 Doubleline Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Doubleline Emerging.

Diversification Opportunities for Cohen Steers and Doubleline Emerging

0.79

Correlation Coefficient

Cohen Steers  Doubleline Emerging

Poor diversification

The 3 months correlation between Cohen and Doubleline is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Global and Doubleline Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Emerging 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 Global are associated (or correlated) with Doubleline Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Emerging has no effect on the direction of Cohen Steers i.e., Cohen Steers and Doubleline Emerging go up and down completely randomly.

Pair Corralation between Cohen Steers and Doubleline Emerging

Assuming the 90 days horizon Cohen Steers is expected to generate 3.37 times less return on investment than Doubleline Emerging. In addition to that, Cohen Steers is 1.98 times more volatile than Doubleline Emerging Markets. It trades about 0.05 of its total potential returns per unit of risk. Doubleline Emerging Markets is currently generating about 0.3 per unit of volatility. If you would invest  884.00  in Doubleline Emerging Markets on May 17, 2025 and sell it today you would earn a total of  56.00  from holding Doubleline Emerging Markets or generate 6.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Cohen Steers Global  vs.  Doubleline Emerging Markets

Cohen Steers Global

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Steers Global are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Cohen Steers is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Doubleline Emerging

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Emerging Markets are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Doubleline Emerging may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Cohen Steers and Doubleline Emerging

The main advantage of trading using opposite Cohen Steers and Doubleline Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Doubleline Emerging 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 Doubleline Emerging will offset losses from the drop in Doubleline Emerging's long position.

The idea behind Cohen Steers Global and Doubleline Emerging Markets 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.