Correlation Between Manulife Global and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between Manulife Global Equity and Dow Jones Industrial, you can compare the effects of market volatilities on Manulife Global and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Global and Dow Jones.
Diversification Opportunities for Manulife Global and Dow Jones
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Manulife and Dow is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Global Equity and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Manulife Global i.e., Manulife Global and Dow Jones go up and down completely randomly.
Pair Corralation between Manulife Global and Dow Jones
Assuming the 90 days trading horizon Manulife Global is expected to generate 1.41 times less return on investment than Dow Jones. But when comparing it to its historical volatility, Manulife Global Equity is 1.24 times less risky than Dow Jones. It trades about 0.08 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,755,792 in Dow Jones Industrial on September 14, 2024 and sell it today you would earn a total of 635,620 from holding Dow Jones Industrial or generate 16.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Manulife Global Equity vs. Dow Jones Industrial
Performance |
| Timeline |
Manulife Global and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Manulife Global Equity
Pair trading matchups for Manulife Global
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Manulife Global and Dow Jones
The main advantage of trading using opposite Manulife Global and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Global position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Manulife Global vs. Edgepoint Global Portfolio | Manulife Global vs. RBC Global Equity | Manulife Global vs. Invesco Global Companies | Manulife Global vs. TD Comfort Aggressive |
| Dow Jones vs. Hurco Companies | Dow Jones vs. Tyson Foods | Dow Jones vs. MYR Group | Dow Jones vs. Cannae Holdings |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |