Correlation Between Manulife Financial and Bet At
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Bet At 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 Bet At 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 bet at home AG, you can compare the effects of market volatilities on Manulife Financial and Bet At 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 Bet At. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Bet At.
Diversification Opportunities for Manulife Financial and Bet At
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manulife and Bet is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and bet at home AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on bet at home 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 Bet At. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of bet at home has no effect on the direction of Manulife Financial i.e., Manulife Financial and Bet At go up and down completely randomly.
Pair Corralation between Manulife Financial and Bet At
Assuming the 90 days trading horizon Manulife Financial Corp is expected to under-perform the Bet At. But the stock apears to be less risky and, when comparing its historical volatility, Manulife Financial Corp is 1.78 times less risky than Bet At. The stock trades about -0.1 of its potential returns per unit of risk. The bet at home AG is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 259.00 in bet at home AG on October 30, 2024 and sell it today you would earn a total of 25.00 from holding bet at home AG or generate 9.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 46.15% |
| Values | Daily Returns |
Manulife Financial Corp vs. bet at home AG
Performance |
| Timeline |
| Manulife Financial Corp |
| bet at home |
Manulife Financial and Bet At Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Bet At
The main advantage of trading using opposite Manulife Financial and Bet At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Bet At 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 Bet At will offset losses from the drop in Bet At's long position.| Manulife Financial vs. Beazer Homes USA | Manulife Financial vs. Allianz Technology Trust | Manulife Financial vs. DXC Technology Co | Manulife Financial vs. Software Circle plc |
| Bet At vs. Berkshire Hathaway | Bet At vs. Samsung Electronics Co | Bet At vs. Samsung Electronics Co | Bet At vs. Chocoladefabriken Lindt Spruengli |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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