Correlation Between Cohn Steers and Burford Capital

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Cohn Steers and Burford Capital 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 Burford Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohn Steers and Burford Capital, you can compare the effects of market volatilities on Cohn Steers and Burford Capital 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 Burford Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohn Steers and Burford Capital.

Diversification Opportunities for Cohn Steers and Burford Capital

0.42
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Cohn Steers and Burford is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cohn Steers and Burford Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burford Capital 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 Burford Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burford Capital has no effect on the direction of Cohn Steers i.e., Cohn Steers and Burford Capital go up and down completely randomly.

Pair Corralation between Cohn Steers and Burford Capital

Considering the 90-day investment horizon Cohn Steers is expected to under-perform the Burford Capital. In addition to that, Cohn Steers is 1.0 times more volatile than Burford Capital. It trades about -0.13 of its total potential returns per unit of risk. Burford Capital is currently generating about -0.02 per unit of volatility. If you would invest  963.00  in Burford Capital on March 27, 2022 and sell it today you would lose (36.00)  from holding Burford Capital or give up 3.74% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Cohn Steers  vs.  Burford Capital

 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 weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in July 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
0.0331
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

Burford Capital 
Burford Performance
0 of 100
Over the last 90 days Burford Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Burford Capital is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Structure and Payout Changes

Forward Annual Dividend Yield
0.014
Forward Annual Dividend Rate
0.12
Dividend Date
2022-06-17
Ex Dividend Date
2022-05-26

Burford Price Channel

Cohn Steers and Burford Capital Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Cohn Steers and Burford Capital

The main advantage of trading using opposite Cohn Steers and Burford Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohn Steers position performs unexpectedly, Burford Capital 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 Burford Capital will offset losses from the drop in Burford Capital's long position.
The idea behind Cohn Steers and Burford Capital 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.
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Other Complementary Tools

Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go