Correlation Between CDSPI Global and Manulife Global
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By analyzing existing cross correlation between CDSPI Global Growth and Manulife Global Equity, you can compare the effects of market volatilities on CDSPI Global 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 CDSPI Global with a short position of Manulife Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDSPI Global and Manulife Global.
Diversification Opportunities for CDSPI Global and Manulife Global
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CDSPI and Manulife is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding CDSPI Global Growth 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 CDSPI Global 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 CDSPI Global Growth 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 CDSPI Global i.e., CDSPI Global and Manulife Global go up and down completely randomly.
Pair Corralation between CDSPI Global and Manulife Global
Assuming the 90 days trading horizon CDSPI Global Growth is expected to generate 1.4 times more return on investment than Manulife Global. However, CDSPI Global is 1.4 times more volatile than Manulife Global Equity. It trades about -0.04 of its potential returns per unit of risk. Manulife Global Equity is currently generating about -0.33 per unit of risk. If you would invest 6,108 in CDSPI Global Growth on October 12, 2024 and sell it today you would lose (44.00) from holding CDSPI Global Growth or give up 0.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CDSPI Global Growth vs. Manulife Global Equity
Performance |
| Timeline |
| CDSPI Global Growth |
| Manulife Global Equity |
CDSPI Global and Manulife Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDSPI Global and Manulife Global
The main advantage of trading using opposite CDSPI Global and Manulife Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDSPI Global 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.| CDSPI Global vs. Global Healthcare Income | CDSPI Global vs. CI Global Alpha | CDSPI Global vs. CI Global Alpha | CDSPI Global vs. Invesco Global Companies |
| Manulife Global vs. Global Healthcare Income | Manulife Global vs. CI Global Alpha | Manulife Global vs. CI Global Alpha | Manulife Global vs. CDSPI Global Growth |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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