Correlation Between John Hancock and Cohen
Can any of the company-specific risk be diversified away by investing in both John Hancock and Cohen 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 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Financial and Cohen And Steers, you can compare the effects of market volatilities on John Hancock and Cohen 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Cohen.
Diversification Opportunities for John Hancock and Cohen
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between John and Cohen is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Financial and Cohen And Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen And Steers 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 Financial are associated (or correlated) with Cohen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen And Steers has no effect on the direction of John Hancock i.e., John Hancock and Cohen go up and down completely randomly.
Pair Corralation between John Hancock and Cohen
Considering the 90-day investment horizon John Hancock Financial is expected to generate 1.08 times more return on investment than Cohen. However, John Hancock is 1.08 times more volatile than Cohen And Steers. It trades about -0.1 of its potential returns per unit of risk. Cohen And Steers is currently generating about -0.11 per unit of risk. If you would invest 2,856 in John Hancock Financial on February 2, 2024 and sell it today you would lose (85.00) from holding John Hancock Financial or give up 2.98% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
John Hancock Financial vs. Cohen And Steers
Performance |
Timeline |
John Hancock Financial |
Cohen And Steers |
John Hancock and Cohen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with John Hancock and Cohen
The main advantage of trading using opposite John Hancock and Cohen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Cohen 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 will offset losses from the drop in Cohen's long position.John Hancock vs. Pimco New York | John Hancock vs. Aquagold International | John Hancock vs. Morningstar Unconstrained Allocation | John Hancock vs. High Yield Municipal Fund |
Cohen vs. Pimco New York | Cohen vs. Aquagold International | Cohen vs. Morningstar Unconstrained Allocation | Cohen vs. High Yield Municipal Fund |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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