Correlation Between Cohn Steers and Blackrock

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Can any of the company-specific risk be diversified away by investing in both Cohn Steers and Blackrock 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 Cohn Steers and Blackrock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohn Steers and Blackrock, you can compare the effects of market volatilities on Cohn Steers and Blackrock 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 Cohn Steers with a short position of Blackrock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohn Steers and Blackrock.

Diversification Opportunities for Cohn Steers and Blackrock

0.84
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Cohn Steers and Blackrock is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cohn Steers and Blackrock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock and Cohn 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 Cohn Steers are associated (or correlated) with Blackrock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock has no effect on the direction of Cohn Steers i.e., Cohn Steers and Blackrock go up and down completely randomly.

Pair Corralation between Cohn Steers and Blackrock

Considering the 90-day investment horizon Cohn Steers is expected to under-perform the Blackrock. But the stock apears to be less risky and, when comparing its historical volatility, Cohn Steers is 1.07 times less risky than Blackrock. The stock trades about -0.29 of its potential returns per unit of risk. The Blackrock is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest  67,534  in Blackrock on April 5, 2022 and sell it today you would lose (5,864)  from holding Blackrock or give up 8.68% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Cohn Steers  vs.  Blackrock

 Performance (%) 
      Timeline 
Cohn Steers 
Cohn Steers Performance
0 of 100
Over the last 90 days Cohn Steers has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in August 2022. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0338
Payout Ratio
0.76
Forward Annual Dividend Rate
2.2
Dividend Date
2022-05-26
Ex Dividend Date
2022-05-13

Cohn Steers Price Channel

Blackrock 
Blackrock Performance
0 of 100
Over the last 90 days Blackrock has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in August 2022. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0317
Payout Ratio
0.44
Last Split Factor
1:1
Forward Annual Dividend Rate
19.52
Dividend Date
2022-06-23
Ex Dividend Date
2022-06-03
Last Split Date
2007-06-05

Blackrock Price Channel

Cohn Steers and Blackrock Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Cohn Steers and Blackrock

The main advantage of trading using opposite Cohn Steers and Blackrock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohn Steers position performs unexpectedly, Blackrock 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 Blackrock will offset losses from the drop in Blackrock's long position.

Cohn Steers

Pair trading matchups for Cohn Steers

The idea behind Cohn Steers and Blackrock pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Blackrock

Pair trading matchups for Blackrock

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 Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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