Correlation Between Cohen and John Hancock
Can any of the company-specific risk be diversified away by investing in both Cohen and John Hancock 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 Cohen and John Hancock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen And Steers and John Hancock Preferred, you can compare the effects of market volatilities on Cohen and John Hancock 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 Cohen with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen and John Hancock.
Diversification Opportunities for Cohen and John Hancock
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cohen and John is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Cohen And Steers and John Hancock Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Preferred and Cohen 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 Cohen And Steers are associated (or correlated) with John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Preferred has no effect on the direction of Cohen i.e., Cohen and John Hancock go up and down completely randomly.
Pair Corralation between Cohen and John Hancock
Considering the 90-day investment horizon Cohen And Steers is expected to generate 1.04 times more return on investment than John Hancock. However, Cohen is 1.04 times more volatile than John Hancock Preferred. It trades about 0.11 of its potential returns per unit of risk. John Hancock Preferred is currently generating about 0.12 per unit of risk. If you would invest 1,998 in Cohen And Steers on September 5, 2024 and sell it today you would earn a total of 580.00 from holding Cohen And Steers or generate 29.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen And Steers vs. John Hancock Preferred
Performance |
| Timeline |
| Cohen And Steers |
| John Hancock Preferred |
Cohen and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen and John Hancock
The main advantage of trading using opposite Cohen and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock's long position.| Cohen vs. Cohen Steers Reit | Cohen vs. Dnp Select Income | Cohen vs. Cohen Steers Qualityome | Cohen vs. Pimco Dynamic Income |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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