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 Intermediate 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

0.39

Correlation Coefficient

First Trust  Cohen

Weak diversification

The 3 months correlation between First and Cohen is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Intermediate 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 Intermediate 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

Considering the 90-day investment horizon First Trust Intermediate is expected to under-perform the Cohen. But the fund apears to be less risky and, when comparing its historical volatility, First Trust Intermediate is 1.13 times less risky than Cohen. The fund trades about -0.05 of its potential returns per unit of risk. The Cohen and Steers is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  2,021  in Cohen and Steers on September 9, 2025 and sell it today you would earn a total of  25.00  from holding Cohen and Steers or generate 1.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

First Trust Intermediate  vs.  Cohen and Steers

First Trust Intermediate

Risk-Adjusted Performance

Weakest

Over the last 90 days First Trust Intermediate has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable basic indicators, First Trust is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Cohen and Steers

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen and Steers are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Cohen is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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 Intermediate 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.

Check out your portfolio center.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.