Correlation Between Manulife Financial and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Austevoll Seafood at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Manulife Financial and Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manulife Financial Corp and Austevoll Seafood ASA, you can compare the effects of market volatilities on Manulife Financial and Austevoll Seafood 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 Financial with a short position of Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Austevoll Seafood.
Diversification Opportunities for Manulife Financial and Austevoll Seafood
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Manulife and Austevoll is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Austevoll Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austevoll Seafood ASA and Manulife Financial 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 Financial Corp are associated (or correlated) with Austevoll Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austevoll Seafood ASA has no effect on the direction of Manulife Financial i.e., Manulife Financial and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Manulife Financial and Austevoll Seafood
Assuming the 90 days trading horizon Manulife Financial Corp is expected to generate 1.09 times more return on investment than Austevoll Seafood. However, Manulife Financial is 1.09 times more volatile than Austevoll Seafood ASA. It trades about 0.23 of its potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.06 per unit of risk. If you would invest 2,237 in Manulife Financial Corp on November 1, 2024 and sell it today you would earn a total of 2,148 from holding Manulife Financial Corp or generate 96.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 36.69% |
| Values | Daily Returns |
Manulife Financial Corp vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Manulife Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Austevoll Seafood ASA |
Manulife Financial and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Austevoll Seafood
The main advantage of trading using opposite Manulife Financial and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Austevoll Seafood 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 Austevoll Seafood will offset losses from the drop in Austevoll Seafood's long position.| Manulife Financial vs. Spirent Communications plc | Manulife Financial vs. Tatton Asset Management | Manulife Financial vs. Zoom Video Communications | Manulife Financial vs. Aeorema Communications Plc |
| Austevoll Seafood vs. Nordic Semiconductor ASA | Austevoll Seafood vs. Intermediate Capital Group | Austevoll Seafood vs. LBG Media PLC | Austevoll Seafood vs. Travel Leisure Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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