Correlation Between Cohen and First International
Can any of the company-specific risk be diversified away by investing in both Cohen and First International 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 First International 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 First International Bank, you can compare the effects of market volatilities on Cohen and First International 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 First International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen and First International.
Diversification Opportunities for Cohen and First International
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cohen and First is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Cohen And Steers and First International Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First International Bank 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 First International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First International Bank has no effect on the direction of Cohen i.e., Cohen and First International go up and down completely randomly.
Pair Corralation between Cohen and First International
Assuming the 90 days horizon Cohen And Steers is expected to under-perform the First International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Cohen And Steers is 1.76 times less risky than First International. The mutual fund trades about -0.04 of its potential returns per unit of risk. The First International Bank is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,477,000 in First International Bank on January 26, 2024 and sell it today you would lose (28,000) from holding First International Bank or give up 1.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 77.42% |
| Values | Daily Returns |
Cohen And Steers vs. First International Bank
Performance |
| Timeline |
| Cohen And Steers |
| First International Bank |
Cohen and First International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen and First International
The main advantage of trading using opposite Cohen and First International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen position performs unexpectedly, First International 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 First International will offset losses from the drop in First International's long position.| Cohen vs. Select Fund C | Cohen vs. SCOR PK | Cohen vs. Aquagold International | Cohen vs. Morningstar Unconstrained Allocation |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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