Correlation Between Manulife Global and RBC Global
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By analyzing existing cross correlation between Manulife Global Equity and RBC Global Equity, you can compare the effects of market volatilities on Manulife Global and RBC 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 Manulife Global with a short position of RBC Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Global and RBC Global.
Diversification Opportunities for Manulife Global and RBC Global
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Manulife and RBC is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Global Equity and RBC Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Global Equity and Manulife 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 Manulife Global Equity are associated (or correlated) with RBC Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Global Equity has no effect on the direction of Manulife Global i.e., Manulife Global and RBC Global go up and down completely randomly.
Pair Corralation between Manulife Global and RBC Global
Assuming the 90 days trading horizon Manulife Global Equity is expected to generate 0.26 times more return on investment than RBC Global. However, Manulife Global Equity is 3.87 times less risky than RBC Global. It trades about -0.25 of its potential returns per unit of risk. RBC Global Equity is currently generating about -0.24 per unit of risk. If you would invest 4,460 in Manulife Global Equity on October 10, 2024 and sell it today you would lose (129.00) from holding Manulife Global Equity or give up 2.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Global Equity vs. RBC Global Equity
Performance |
| Timeline |
| Manulife Global Equity |
| RBC Global Equity |
Manulife Global and RBC Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Global and RBC Global
The main advantage of trading using opposite Manulife Global and RBC Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Global position performs unexpectedly, RBC 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 RBC Global will offset losses from the drop in RBC Global's long position.| Manulife Global vs. RBC Global Equity | Manulife Global vs. Invesco Global Companies | Manulife Global vs. CI Black Creek | Manulife Global vs. TD Comfort Aggressive |
| RBC Global vs. RBC mondial dnergie | RBC Global vs. RBC dactions mondiales | RBC Global vs. RBC European Mid Cap | RBC Global vs. RBC Global Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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