Correlation Between PHN Canadian and Manulife Global
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By analyzing existing cross correlation between PHN Canadian Equity and Manulife Global Equity, you can compare the effects of market volatilities on PHN Canadian 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 PHN Canadian with a short position of Manulife Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Canadian and Manulife Global.
Diversification Opportunities for PHN Canadian and Manulife Global
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PHN and Manulife is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding PHN Canadian Equity 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 PHN Canadian 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 PHN Canadian Equity 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 PHN Canadian i.e., PHN Canadian and Manulife Global go up and down completely randomly.
Pair Corralation between PHN Canadian and Manulife Global
Assuming the 90 days trading horizon PHN Canadian Equity is expected to generate 0.79 times more return on investment than Manulife Global. However, PHN Canadian Equity is 1.26 times less risky than Manulife Global. It trades about 0.56 of its potential returns per unit of risk. Manulife Global Equity is currently generating about 0.25 per unit of risk. If you would invest 2,154 in PHN Canadian Equity on September 1, 2024 and sell it today you would earn a total of 117.00 from holding PHN Canadian Equity or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
PHN Canadian Equity vs. Manulife Global Equity
Performance |
| Timeline |
| PHN Canadian Equity |
| Manulife Global Equity |
PHN Canadian and Manulife Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHN Canadian and Manulife Global
The main advantage of trading using opposite PHN Canadian and Manulife Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Canadian 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.| PHN Canadian vs. Fidelity Tactical High | PHN Canadian vs. Global Healthcare Income | PHN Canadian vs. CI Global Alpha | PHN Canadian vs. CI Global Alpha |
| Manulife Global vs. RBC Select Balanced | Manulife Global vs. RBC Portefeuille de | Manulife Global vs. Edgepoint Global Portfolio | Manulife Global vs. TD Comfort Balanced |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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