Correlation Between Manulife Financial and Hansa Investment
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Hansa Investment 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 Hansa Investment 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 Hansa Investment, you can compare the effects of market volatilities on Manulife Financial and Hansa Investment 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 Hansa Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Hansa Investment.
Diversification Opportunities for Manulife Financial and Hansa Investment
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manulife and Hansa is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Hansa Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansa Investment 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 Hansa Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansa Investment has no effect on the direction of Manulife Financial i.e., Manulife Financial and Hansa Investment go up and down completely randomly.
Pair Corralation between Manulife Financial and Hansa Investment
Assuming the 90 days trading horizon Manulife Financial Corp is expected to generate 1.37 times more return on investment than Hansa Investment. However, Manulife Financial is 1.37 times more volatile than Hansa Investment. It trades about 0.24 of its potential returns per unit of risk. Hansa Investment is currently generating about 0.06 per unit of risk. If you would invest 3,535 in Manulife Financial Corp on October 18, 2024 and sell it today you would earn a total of 853.00 from holding Manulife Financial Corp or generate 24.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 36.29% |
| Values | Daily Returns |
Manulife Financial Corp vs. Hansa Investment
Performance |
| Timeline |
| Manulife Financial Corp |
| Hansa Investment |
Manulife Financial and Hansa Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Hansa Investment
The main advantage of trading using opposite Manulife Financial and Hansa Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Hansa Investment 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 Hansa Investment will offset losses from the drop in Hansa Investment's long position.| Manulife Financial vs. First Class Metals | Manulife Financial vs. URU Metals | Manulife Financial vs. Allianz Technology Trust | Manulife Financial vs. Ashtead Technology Holdings |
| Hansa Investment vs. Manulife Financial Corp | Hansa Investment vs. Sparebank 1 SR | Hansa Investment vs. Eastinco Mining Exploration | Hansa Investment vs. Pan American Silver |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |