Correlation Between Jhancock Diversified and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Jhancock 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 Jhancock 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 Jhancock Diversified Macro and Cohen Steers Low, you can compare the effects of market volatilities on Jhancock 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 Jhancock Diversified with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Diversified and Cohen Steers.
Diversification Opportunities for Jhancock Diversified and Cohen Steers
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jhancock and Cohen is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Diversified Macro and Cohen Steers Low in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Low and Jhancock 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 Jhancock Diversified Macro 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 Low has no effect on the direction of Jhancock Diversified i.e., Jhancock Diversified and Cohen Steers go up and down completely randomly.
Pair Corralation between Jhancock Diversified and Cohen Steers
Assuming the 90 days horizon Jhancock Diversified is expected to generate 1.67 times less return on investment than Cohen Steers. In addition to that, Jhancock Diversified is 5.31 times more volatile than Cohen Steers Low. It trades about 0.02 of its total potential returns per unit of risk. Cohen Steers Low is currently generating about 0.19 per unit of volatility. If you would invest 932.00 in Cohen Steers Low on September 3, 2024 and sell it today you would earn a total of 12.00 from holding Cohen Steers Low or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Diversified Macro vs. Cohen Steers Low
Performance |
| Timeline |
| Jhancock Diversified |
| Cohen Steers Low |
Jhancock Diversified and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Diversified and Cohen Steers
The main advantage of trading using opposite Jhancock Diversified and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock 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.| Jhancock Diversified vs. Goldman Sachs Short | Jhancock Diversified vs. Angel Oak Ultrashort | Jhancock Diversified vs. Siit Ultra Short | Jhancock Diversified vs. Sterling Capital Short |
| Cohen Steers vs. T Rowe Price | Cohen Steers vs. T Rowe Price | Cohen Steers vs. Arrow Managed Futures | Cohen Steers vs. Barings Emerging Markets |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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