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 Income and Cohen Steers Limited, 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
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between John and Cohen is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Income and Cohen Steers Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Limited 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 Income 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 Limited 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 is expected to generate 2.23 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, John Hancock Income is 1.2 times less risky than Cohen Steers. It trades about 0.05 of its potential returns per unit of risk. Cohen Steers Limited is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,620 in Cohen Steers Limited on September 1, 2024 and sell it today you would earn a total of 485.00 from holding Cohen Steers Limited or generate 29.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Income vs. Cohen Steers Limited
Performance |
| Timeline |
| John Hancock Income |
| Cohen Steers Limited |
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. MFS High Income | John Hancock vs. MFS Investment Grade | John Hancock vs. Blackrock Muniholdings Closed | John Hancock vs. Eaton Vance National |
| Cohen Steers vs. Tekla Healthcare Investors | Cohen Steers vs. Tekla Healthcare Opportunities | Cohen Steers vs. Eaton Vance Tax | Cohen Steers vs. Tekla World Healthcare |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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