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 Investors and Cohen Steers Qualityome, 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

0.28

Correlation Coefficient

John Hancock  Cohen Steers

Modest diversification

The 3 months correlation between John and Cohen is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Investors and Cohen Steers Qualityome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Qualityome 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 Investors 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 Qualityome 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 Investors is expected to generate 0.67 times more return on investment than Cohen Steers. However, John Hancock Investors is 1.49 times less risky than Cohen Steers. It trades about 0.05 of its potential returns per unit of risk. Cohen Steers Qualityome is currently generating about 0.02 per unit of risk. If you would invest  1,153  in John Hancock Investors on October 9, 2024 and sell it today you would earn a total of  238.00  from holding John Hancock Investors or generate 20.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

John Hancock Investors  vs.  Cohen Steers Qualityome

John Hancock Investors

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days John Hancock Investors has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, John Hancock is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Cohen Steers Qualityome

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cohen Steers Qualityome has generated negative risk-adjusted returns adding no value to fund investors. Despite latest fragile performance, the Fund's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the fund traders.

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.

The idea behind John Hancock Investors and Cohen Steers Qualityome 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.

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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.