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 High and Cohen Steers Mlp, 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
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between John and Cohen is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock High and Cohen Steers Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Mlp 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 High 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 Mlp 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
Assuming the 90 days horizon John Hancock is expected to generate 2.53 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, John Hancock High is 3.73 times less risky than Cohen Steers. It trades about 0.32 of its potential returns per unit of risk. Cohen Steers Mlp is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 882.00 in Cohen Steers Mlp on August 17, 2025 and sell it today you would earn a total of 112.00 from holding Cohen Steers Mlp or generate 12.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock High vs. Cohen Steers Mlp
Performance |
| Timeline |
| John Hancock High |
| Cohen Steers Mlp |
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. Regional Bank Fund | John Hancock vs. Regional Bank Fund | John Hancock vs. Multimanager Lifestyle Moderate | John Hancock vs. Multimanager Lifestyle Balanced |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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