Correlation Between John Hancock and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both John Hancock 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 John Hancock and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Financial and Cohen Steers Preferred, you can compare the effects of market volatilities on John Hancock 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 John Hancock with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Cohen Steers.
Diversification Opportunities for John Hancock and Cohen Steers
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between John and Cohen is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Cohen Steers Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Preferred and John Hancock 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 John Hancock Financial 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 Preferred has no effect on the direction of John Hancock i.e., John Hancock and Cohen Steers go up and down completely randomly.
Pair Corralation between John Hancock and Cohen Steers
Considering the 90-day investment horizon John Hancock Financial is expected to generate 11.97 times more return on investment than Cohen Steers. However, John Hancock is 11.97 times more volatile than Cohen Steers Preferred. It trades about 0.35 of its potential returns per unit of risk. Cohen Steers Preferred is currently generating about 0.02 per unit of risk. If you would invest 3,415 in John Hancock Financial on September 1, 2024 and sell it today you would earn a total of 525.00 from holding John Hancock Financial or generate 15.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Financial vs. Cohen Steers Preferred
Performance |
| Timeline |
| John Hancock Financial |
| Cohen Steers Preferred |
John Hancock and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Cohen Steers
The main advantage of trading using opposite John Hancock and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock 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.| John Hancock vs. Tekla Life Sciences | John Hancock vs. Tekla World Healthcare | John Hancock vs. Tekla Healthcare Opportunities | John Hancock vs. Royce Value Closed |
| Cohen Steers vs. Vanguard Financials Index | Cohen Steers vs. 1919 Financial Services | Cohen Steers vs. Angel Oak Financial | Cohen Steers vs. John Hancock Financial |
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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