Correlation Between Manulife Financial and Blackrock World
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Blackrock World 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 Blackrock World 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 Blackrock World Mining, you can compare the effects of market volatilities on Manulife Financial and Blackrock World 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 Blackrock World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Blackrock World.
Diversification Opportunities for Manulife Financial and Blackrock World
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Manulife and Blackrock is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Blackrock World Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock World Mining 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 Blackrock World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock World Mining has no effect on the direction of Manulife Financial i.e., Manulife Financial and Blackrock World go up and down completely randomly.
Pair Corralation between Manulife Financial and Blackrock World
Assuming the 90 days trading horizon Manulife Financial Corp is expected to under-perform the Blackrock World. In addition to that, Manulife Financial is 1.15 times more volatile than Blackrock World Mining. It trades about 0.0 of its total potential returns per unit of risk. Blackrock World Mining is currently generating about 0.09 per unit of volatility. If you would invest 48,600 in Blackrock World Mining on November 2, 2024 and sell it today you would earn a total of 1,000.00 from holding Blackrock World Mining or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 47.62% |
| Values | Daily Returns |
Manulife Financial Corp vs. Blackrock World Mining
Performance |
| Timeline |
| Manulife Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Blackrock World Mining |
Manulife Financial and Blackrock World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Blackrock World
The main advantage of trading using opposite Manulife Financial and Blackrock World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Blackrock World 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 Blackrock World will offset losses from the drop in Blackrock World's long position.| Manulife Financial vs. Spirent Communications plc | Manulife Financial vs. United Internet AG | Manulife Financial vs. Dalata Hotel Group | Manulife Financial vs. Invesco Physical Silver |
| Blackrock World vs. Deutsche Pfandbriefbank AG | Blackrock World vs. MG Credit Income | Blackrock World vs. Bankers Investment Trust | Blackrock World vs. Alliance Data Systems |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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