Correlation Between First Trust and Cohen

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

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

Diversification Opportunities for First Trust and Cohen

0.0

Correlation Coefficient

First Trust  Cohen

Pay attention - limited upside

The 3 months correlation between First and Cohen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Energy and Cohen And Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen And Steers and First Trust 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 First Trust Energy are associated (or correlated) with Cohen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen And Steers has no effect on the direction of First Trust i.e., First Trust and Cohen go up and down completely randomly.

Pair Corralation between First Trust and Cohen

If you would invest  2,386  in Cohen And Steers on February 2, 2025 and sell it today you would earn a total of  165.00  from holding Cohen And Steers or generate 6.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

First Trust Energy  vs.  Cohen And Steers

First Trust Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days First Trust Energy has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy technical and fundamental indicators, First Trust is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Cohen And Steers

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen And Steers are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly weak basic indicators, Cohen may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Pair Trading with First Trust and Cohen

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

The idea behind First Trust Energy and Cohen And Steers 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.