Correlation Between Cohen Steers and Dfa Real
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Dfa Real 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 Steers and Dfa Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Real and Dfa Real Estate, you can compare the effects of market volatilities on Cohen Steers and Dfa Real 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 Steers with a short position of Dfa Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Dfa Real.
Diversification Opportunities for Cohen Steers and Dfa Real
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Cohen and Dfa is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Real and Dfa Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dfa Real Estate and Cohen Steers 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 Steers Real are associated (or correlated) with Dfa Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dfa Real Estate has no effect on the direction of Cohen Steers i.e., Cohen Steers and Dfa Real go up and down completely randomly.
Pair Corralation between Cohen Steers and Dfa Real
Assuming the 90 days horizon Cohen Steers Real is expected to generate 0.95 times more return on investment than Dfa Real. However, Cohen Steers Real is 1.05 times less risky than Dfa Real. It trades about -0.12 of its potential returns per unit of risk. Dfa Real Estate is currently generating about -0.13 per unit of risk. If you would invest 1,612 in Cohen Steers Real on February 7, 2024 and sell it today you would lose (51.00) from holding Cohen Steers Real or give up 3.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cohen Steers Real vs. Dfa Real Estate
Performance |
| Timeline |
| Cohen Steers Real |
| Dfa Real Estate |
Cohen Steers and Dfa Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Dfa Real
The main advantage of trading using opposite Cohen Steers and Dfa Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Dfa Real 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 Dfa Real will offset losses from the drop in Dfa Real's long position.| Cohen Steers vs. Realty Income Corp | Cohen Steers vs. Dynex Capital | Cohen Steers vs. First Industrial Realty | Cohen Steers vs. Healthcare Realty Trust |
| Dfa Real vs. Dfa International Small | Dfa Real vs. Us Large Cap | Dfa Real vs. International Small Pany | Dfa Real vs. Dfa International Value |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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