Correlation Between Adams Diversified and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Adams Diversified 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 Adams Diversified and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adams Diversified Equity and Cohen Steers Real, you can compare the effects of market volatilities on Adams Diversified 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 Adams Diversified with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adams Diversified and Cohen Steers.
Diversification Opportunities for Adams Diversified and Cohen Steers
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Adams and Cohen is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Adams Diversified Equity 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 Adams Diversified 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 Adams Diversified Equity 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 Adams Diversified i.e., Adams Diversified and Cohen Steers go up and down completely randomly.
Pair Corralation between Adams Diversified and Cohen Steers
Assuming the 90 days horizon Adams Diversified Equity is expected to generate 0.91 times more return on investment than Cohen Steers. However, Adams Diversified Equity is 1.1 times less risky than Cohen Steers. It trades about 0.16 of its potential returns per unit of risk. Cohen Steers Real is currently generating about 0.02 per unit of risk. If you would invest 2,341 in Adams Diversified Equity on May 31, 2025 and sell it today you would earn a total of 57.00 from holding Adams Diversified Equity or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Adams Diversified Equity vs. Cohen Steers Real
Performance |
| Timeline |
| Adams Diversified Equity |
| Cohen Steers Real |
Adams Diversified and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adams Diversified and Cohen Steers
The main advantage of trading using opposite Adams Diversified and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adams Diversified 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.| Adams Diversified vs. Harding Loevner Emerging | Adams Diversified vs. Franklin Emerging Market | Adams Diversified vs. Ashmore Emerging Markets | Adams Diversified vs. Investec Emerging Markets |
| Cohen Steers vs. Cohen Steers Low | Cohen Steers vs. Cohen Steers Low | Cohen Steers vs. Cohen Steers Low | Cohen Steers vs. Cohen Steers Low |
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.
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