Correlation Between Cohen Steers and Jackson Square

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

By analyzing existing cross correlation between Cohen Steers Real and Jackson Square Smid Cap, you can compare the effects of market volatilities on Cohen Steers and Jackson Square 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 Jackson Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Jackson Square.

Diversification Opportunities for Cohen Steers and Jackson Square

0.62

Correlation Coefficient

Cohen Steers  Jackson Square

Poor diversification

The 3 months correlation between Cohen and Jackson is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Real and Jackson Square Smid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackson Square Smid 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 Real are associated (or correlated) with Jackson Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jackson Square Smid has no effect on the direction of Cohen Steers i.e., Cohen Steers and Jackson Square go up and down completely randomly.

Pair Corralation between Cohen Steers and Jackson Square

Assuming the 90 days horizon Cohen Steers Real is expected to under-perform the Jackson Square. But the mutual fund apears to be less risky and, when comparing its historical volatility, Cohen Steers Real is 1.43 times less risky than Jackson Square. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Jackson Square Smid Cap is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,745  in Jackson Square Smid Cap on May 3, 2025 and sell it today you would earn a total of  70.00  from holding Jackson Square Smid Cap or generate 4.01% return on investment over 90 days.

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

Cohen Steers Real  vs.  Jackson Square Smid Cap

Cohen Steers Real

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cohen Steers Real has generated negative risk-adjusted returns adding no value to fund investors. 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.

Jackson Square Smid

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Jackson Square Smid Cap are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Jackson Square is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cohen Steers and Jackson Square

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

The idea behind Cohen Steers Real and Jackson Square Smid Cap 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.