Correlation Between Cohen Steers and John Hancock
Can any of the company-specific risk be diversified away by investing in both Cohen Steers 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 Steers 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 Steers Limited and John Hancock Financial, you can compare the effects of market volatilities on Cohen Steers 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 Steers with a short position of John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and John Hancock.
Diversification Opportunities for Cohen Steers and John Hancock
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and John is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Limited and John Hancock Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Financial and Cohen Steers 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 Steers Limited 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 Financial has no effect on the direction of Cohen Steers i.e., Cohen Steers and John Hancock go up and down completely randomly.
Pair Corralation between Cohen Steers and John Hancock
Considering the 90-day investment horizon Cohen Steers Limited is expected to generate 0.45 times more return on investment than John Hancock. However, Cohen Steers Limited is 2.23 times less risky than John Hancock. It trades about 0.01 of its potential returns per unit of risk. John Hancock Financial is currently generating about -0.09 per unit of risk. If you would invest 2,091 in Cohen Steers Limited on December 1, 2024 and sell it today you would earn a total of 7.00 from holding Cohen Steers Limited or generate 0.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Cohen Steers Limited vs. John Hancock Financial
Performance |
Timeline |
Cohen Steers Limited |
John Hancock Financial |
Cohen Steers and John Hancock Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cohen Steers and John Hancock
The main advantage of trading using opposite Cohen Steers and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers 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 Steers vs. Tekla Healthcare Investors | Cohen Steers vs. Tekla Healthcare Opportunities | Cohen Steers vs. Eaton Vance Tax | Cohen Steers vs. Tekla World Healthcare |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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