Correlation Between TD Index and Manulife Global
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By analyzing existing cross correlation between TD Index Fund and Manulife Global Equity, you can compare the effects of market volatilities on TD Index and Manulife Global 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 TD Index with a short position of Manulife Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of TD Index and Manulife Global.
Diversification Opportunities for TD Index and Manulife Global
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 0P000071W8 and Manulife is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding TD Index Fund and Manulife Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Global Equity and TD Index 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 TD Index Fund are associated (or correlated) with Manulife Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Global Equity has no effect on the direction of TD Index i.e., TD Index and Manulife Global go up and down completely randomly.
Pair Corralation between TD Index and Manulife Global
Assuming the 90 days trading horizon TD Index Fund is expected to under-perform the Manulife Global. In addition to that, TD Index is 1.08 times more volatile than Manulife Global Equity. It trades about -0.3 of its total potential returns per unit of risk. Manulife Global Equity is currently generating about -0.3 per unit of volatility. If you would invest 5,489 in Manulife Global Equity on December 1, 2024 and sell it today you would lose (190.00) from holding Manulife Global Equity or give up 3.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TD Index Fund vs. Manulife Global Equity
Performance |
| Timeline |
| TD Index Fund |
| Manulife Global Equity |
TD Index and Manulife Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TD Index and Manulife Global
The main advantage of trading using opposite TD Index and Manulife Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TD Index position performs unexpectedly, Manulife Global 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 Manulife Global will offset losses from the drop in Manulife Global's long position.| TD Index vs. Fidelity Tactical High | TD Index vs. Bloom Select Income | TD Index vs. Global Healthcare Income | TD Index vs. Dynamic Alternative Yield |
| Manulife Global vs. Tangerine Equity Growth | Manulife Global vs. Fidelity Global Equity | Manulife Global vs. RBC Canadian Equity | Manulife Global vs. CDSPI Canadian Equity |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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