Correlation Between Cohen Steers and Sa Real
Can any of the company-specific risk be diversified away by investing in both Cohen Steers and Sa 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 Sa Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Realty and Sa Real Estate, you can compare the effects of market volatilities on Cohen Steers and Sa 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 Sa Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Sa Real.
Diversification Opportunities for Cohen Steers and Sa Real
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cohen and SAREX is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Realty and Sa Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sa 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 Realty are associated (or correlated) with Sa Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sa Real Estate has no effect on the direction of Cohen Steers i.e., Cohen Steers and Sa Real go up and down completely randomly.
Pair Corralation between Cohen Steers and Sa Real
Assuming the 90 days horizon Cohen Steers Realty is expected to generate 0.99 times more return on investment than Sa Real. However, Cohen Steers Realty is 1.01 times less risky than Sa Real. It trades about -0.02 of its potential returns per unit of risk. Sa Real Estate is currently generating about -0.02 per unit of risk. If you would invest 6,783 in Cohen Steers Realty on January 19, 2024 and sell it today you would lose (1,047) from holding Cohen Steers Realty or give up 15.44% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 99.8% |
Values | Daily Returns |
Cohen Steers Realty vs. Sa Real Estate
Performance |
Timeline |
Cohen Steers Realty |
Sa Real Estate |
Cohen Steers and Sa Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cohen Steers and Sa Real
The main advantage of trading using opposite Cohen Steers and Sa Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers position performs unexpectedly, Sa 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 Sa Real will offset losses from the drop in Sa Real's long position.Cohen Steers vs. Franklin Natural Resources | Cohen Steers vs. HUMANA INC | Cohen Steers vs. Aquagold International | Cohen Steers vs. Thrivent High Yield |
Sa Real vs. Franklin Natural Resources | Sa Real vs. HUMANA INC | Sa Real vs. Aquagold International | Sa Real vs. Thrivent High Yield |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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