Correlation Between Cohen and Real Estate

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

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

Diversification Opportunities for Cohen and Real Estate

0.99

Correlation Coefficient

Cohen  Real Estate

No risk reduction

The 3 months correlation between Cohen and Real is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Cohen And Steers and Real Estate Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Estate Securities and Cohen 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 And Steers are associated (or correlated) with Real Estate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Estate Securities has no effect on the direction of Cohen i.e., Cohen and Real Estate go up and down completely randomly.

Pair Corralation between Cohen and Real Estate

Assuming the 90 days horizon Cohen is expected to generate 1.16 times less return on investment than Real Estate. In addition to that, Cohen is 1.01 times more volatile than Real Estate Securities. It trades about 0.01 of its total potential returns per unit of risk. Real Estate Securities is currently generating about 0.02 per unit of volatility. If you would invest  2,846  in Real Estate Securities on February 10, 2025 and sell it today you would earn a total of  26.00  from holding Real Estate Securities or generate 0.91% return on investment over 90 days.

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

Cohen And Steers  vs.  Real Estate Securities

Cohen And Steers

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen And Steers are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Cohen is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Real Estate Securities

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Real Estate Securities are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Real Estate is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cohen and Real Estate

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

The idea behind Cohen And Steers and Real Estate Securities 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.