Correlation Between Cohen and Equital
Can any of the company-specific risk be diversified away by investing in both Cohen and Equital 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 Equital 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 Equital, you can compare the effects of market volatilities on Cohen and Equital 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 Equital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen and Equital.
Diversification Opportunities for Cohen and Equital
Poor diversification
The 3 months correlation between Cohen and Equital is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cohen And Steers and Equital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equital 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 Equital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equital has no effect on the direction of Cohen i.e., Cohen and Equital go up and down completely randomly.
Pair Corralation between Cohen and Equital
Assuming the 90 days horizon Cohen And Steers is expected to generate 0.64 times more return on investment than Equital. However, Cohen And Steers is 1.55 times less risky than Equital. It trades about -0.23 of its potential returns per unit of risk. Equital is currently generating about -0.38 per unit of risk. If you would invest 4,510 in Cohen And Steers on January 20, 2024 and sell it today you would lose (307.00) from holding Cohen And Steers or give up 6.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Cohen And Steers vs. Equital
Performance |
| Timeline |
| Cohen And Steers |
| Equital |
Cohen and Equital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen and Equital
The main advantage of trading using opposite Cohen and Equital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen position performs unexpectedly, Equital 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 Equital will offset losses from the drop in Equital's long position.| Cohen vs. Realty Income Corp | Cohen vs. Dynex Capital | Cohen vs. First Industrial Realty | Cohen vs. Healthcare Realty Trust |
| Equital vs. Fattal 1998 Holdings | Equital vs. El Al Israel | Equital vs. Bank Leumi Le Israel | Equital vs. Teva Pharmaceutical Industries |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |