Correlation Between Perkins Small and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Perkins Small and Cohen Steers 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 Perkins Small and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perkins Small Cap and Cohen Steers Real, you can compare the effects of market volatilities on Perkins Small and Cohen Steers 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 Perkins Small with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perkins Small and Cohen Steers.
Diversification Opportunities for Perkins Small and Cohen Steers
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Perkins and Cohen is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Perkins Small Cap and Cohen Steers Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Real and Perkins Small 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 Perkins Small Cap are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Real has no effect on the direction of Perkins Small i.e., Perkins Small and Cohen Steers go up and down completely randomly.
Pair Corralation between Perkins Small and Cohen Steers
Assuming the 90 days horizon Perkins Small Cap is expected to generate 1.22 times more return on investment than Cohen Steers. However, Perkins Small is 1.22 times more volatile than Cohen Steers Real. It trades about 0.06 of its potential returns per unit of risk. Cohen Steers Real is currently generating about 0.03 per unit of risk. If you would invest 2,098 in Perkins Small Cap on May 14, 2025 and sell it today you would earn a total of 82.00 from holding Perkins Small Cap or generate 3.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.39% |
Values | Daily Returns |
Perkins Small Cap vs. Cohen Steers Real
Performance |
Timeline |
Perkins Small Cap |
Cohen Steers Real |
Perkins Small and Cohen Steers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Perkins Small and Cohen Steers
The main advantage of trading using opposite Perkins Small and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perkins Small position performs unexpectedly, Cohen Steers 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 Steers will offset losses from the drop in Cohen Steers' long position.Perkins Small vs. Janus Overseas Fund | Perkins Small vs. Janus Balanced Fund | Perkins Small vs. Perkins Mid Cap | Perkins Small vs. Janus Enterprise Fund |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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