Correlation Between Manulife Dividend and European Residential
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By analyzing existing cross correlation between Manulife Dividend Income and European Residential Real, you can compare the effects of market volatilities on Manulife Dividend and European Residential 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 Dividend with a short position of European Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Dividend and European Residential.
Diversification Opportunities for Manulife Dividend and European Residential
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Manulife and European is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Dividend Income and European Residential Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on European Residential Real and Manulife Dividend 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 Dividend Income are associated (or correlated) with European Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of European Residential Real has no effect on the direction of Manulife Dividend i.e., Manulife Dividend and European Residential go up and down completely randomly.
Pair Corralation between Manulife Dividend and European Residential
Assuming the 90 days trading horizon Manulife Dividend Income is expected to generate 0.06 times more return on investment than European Residential. However, Manulife Dividend Income is 16.26 times less risky than European Residential. It trades about 0.06 of its potential returns per unit of risk. European Residential Real is currently generating about -0.22 per unit of risk. If you would invest 1,498 in Manulife Dividend Income on October 25, 2024 and sell it today you would earn a total of 8.00 from holding Manulife Dividend Income or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
Manulife Dividend Income vs. European Residential Real
Performance |
| Timeline |
| Manulife Dividend Income |
| European Residential Real |
Manulife Dividend and European Residential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Dividend and European Residential
The main advantage of trading using opposite Manulife Dividend and European Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Dividend position performs unexpectedly, European Residential 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 European Residential will offset losses from the drop in European Residential's long position.| Manulife Dividend vs. Manulife All Cap | Manulife Dividend vs. Manulife Global Equity | Manulife Dividend vs. Manulife Dividend Income | Manulife Dividend vs. Fidelity Tactical High |
| European Residential vs. BSR Real Estate | European Residential vs. Minto Apartment Real | European Residential vs. Nexus Real Estate | European Residential vs. Morguard North American |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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