Correlation Between Manulife Financial and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Sligro Food 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 Sligro Food 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 Sligro Food Group, you can compare the effects of market volatilities on Manulife Financial and Sligro Food 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 Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Sligro Food.
Diversification Opportunities for Manulife Financial and Sligro Food
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Manulife and Sligro is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food Group 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 Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of Manulife Financial i.e., Manulife Financial and Sligro Food go up and down completely randomly.
Pair Corralation between Manulife Financial and Sligro Food
Assuming the 90 days trading horizon Manulife Financial Corp is expected to generate 1.46 times more return on investment than Sligro Food. However, Manulife Financial is 1.46 times more volatile than Sligro Food Group. It trades about 0.19 of its potential returns per unit of risk. Sligro Food Group is currently generating about -0.06 per unit of risk. If you would invest 2,367 in Manulife Financial Corp on October 20, 2024 and sell it today you would earn a total of 2,078 from holding Manulife Financial Corp or generate 87.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 36.55% |
| Values | Daily Returns |
Manulife Financial Corp vs. Sligro Food Group
Performance |
| Timeline |
| Manulife Financial Corp |
| Sligro Food Group |
Manulife Financial and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Sligro Food
The main advantage of trading using opposite Manulife Financial and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Sligro Food 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 Sligro Food will offset losses from the drop in Sligro Food's long position.| Manulife Financial vs. Pfeiffer Vacuum Technology | Manulife Financial vs. Axway Software SA | Manulife Financial vs. Kaufman Et Broad | Manulife Financial vs. Trainline Plc |
| Sligro Food vs. Inspiration Healthcare Group | Sligro Food vs. Omega Healthcare Investors | Sligro Food vs. Ashtead Technology Holdings | Sligro Food vs. SMA Solar Technology |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |