Correlation Between Manulife Financial and Ion Beam
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Ion Beam 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 Ion Beam 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 Ion Beam Applications, you can compare the effects of market volatilities on Manulife Financial and Ion Beam 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 Ion Beam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Ion Beam.
Diversification Opportunities for Manulife Financial and Ion Beam
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manulife and Ion is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Ion Beam Applications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ion Beam Applications 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 Ion Beam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ion Beam Applications has no effect on the direction of Manulife Financial i.e., Manulife Financial and Ion Beam go up and down completely randomly.
Pair Corralation between Manulife Financial and Ion Beam
Assuming the 90 days trading horizon Manulife Financial Corp is expected to generate 1.09 times more return on investment than Ion Beam. However, Manulife Financial is 1.09 times more volatile than Ion Beam Applications. It trades about 0.15 of its potential returns per unit of risk. Ion Beam Applications is currently generating about -0.06 per unit of risk. If you would invest 4,089 in Manulife Financial Corp on October 24, 2024 and sell it today you would earn a total of 307.00 from holding Manulife Financial Corp or generate 7.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 42.62% |
| Values | Daily Returns |
Manulife Financial Corp vs. Ion Beam Applications
Performance |
| Timeline |
| Manulife Financial Corp |
| Ion Beam Applications |
Manulife Financial and Ion Beam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Ion Beam
The main advantage of trading using opposite Manulife Financial and Ion Beam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Ion Beam 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 Ion Beam will offset losses from the drop in Ion Beam's long position.| Manulife Financial vs. Electronic Arts | Manulife Financial vs. SMA Solar Technology | Manulife Financial vs. European Metals Holdings | Manulife Financial vs. Sovereign Metals |
| Ion Beam vs. International Consolidated Airlines | Ion Beam vs. Heavitree Brewery | Ion Beam vs. FC Investment Trust | Ion Beam vs. Southwest Airlines 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |