Correlation Between Manulife Financial and Givaudan
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Givaudan 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 Givaudan 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 Givaudan SA, you can compare the effects of market volatilities on Manulife Financial and Givaudan 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 Givaudan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Givaudan.
Diversification Opportunities for Manulife Financial and Givaudan
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Manulife and Givaudan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Givaudan SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Givaudan SA 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 Givaudan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Givaudan SA has no effect on the direction of Manulife Financial i.e., Manulife Financial and Givaudan go up and down completely randomly.
Pair Corralation between Manulife Financial and Givaudan
Assuming the 90 days trading horizon Manulife Financial Corp is expected to under-perform the Givaudan. In addition to that, Manulife Financial is 1.17 times more volatile than Givaudan SA. It trades about -0.2 of its total potential returns per unit of risk. Givaudan SA is currently generating about 0.04 per unit of volatility. If you would invest 387,400 in Givaudan SA on November 7, 2024 and sell it today you would earn a total of 4,250 from holding Givaudan SA or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 40.91% |
| Values | Daily Returns |
Manulife Financial Corp vs. Givaudan SA
Performance |
| Timeline |
| Manulife Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Givaudan SA |
Manulife Financial and Givaudan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Givaudan
The main advantage of trading using opposite Manulife Financial and Givaudan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Givaudan 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 Givaudan will offset losses from the drop in Givaudan's long position.| Manulife Financial vs. Samsung Electronics Co | Manulife Financial vs. Samsung Electronics Co | Manulife Financial vs. Toyota Motor Corp | Manulife Financial vs. Reliance Industries Ltd |
| Givaudan vs. Austevoll Seafood ASA | Givaudan vs. Associated British Foods | Givaudan vs. LPKF Laser Electronics | Givaudan vs. Fevertree Drinks Plc |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |