Correlation Between NORDIC HALIBUT and Manulife Financial
Can any of the company-specific risk be diversified away by investing in both NORDIC HALIBUT and Manulife Financial 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 NORDIC HALIBUT and Manulife Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NORDIC HALIBUT AS and Manulife Financial, you can compare the effects of market volatilities on NORDIC HALIBUT and Manulife Financial 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 NORDIC HALIBUT with a short position of Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORDIC HALIBUT and Manulife Financial.
Diversification Opportunities for NORDIC HALIBUT and Manulife Financial
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NORDIC and Manulife is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding NORDIC HALIBUT AS and Manulife Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Financial and NORDIC HALIBUT 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 NORDIC HALIBUT AS are associated (or correlated) with Manulife Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Financial has no effect on the direction of NORDIC HALIBUT i.e., NORDIC HALIBUT and Manulife Financial go up and down completely randomly.
Pair Corralation between NORDIC HALIBUT and Manulife Financial
Assuming the 90 days horizon NORDIC HALIBUT AS is expected to under-perform the Manulife Financial. In addition to that, NORDIC HALIBUT is 1.32 times more volatile than Manulife Financial. It trades about -0.04 of its total potential returns per unit of risk. Manulife Financial is currently generating about 0.13 per unit of volatility. If you would invest 2,255 in Manulife Financial on September 13, 2024 and sell it today you would earn a total of 755.00 from holding Manulife Financial or generate 33.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NORDIC HALIBUT AS vs. Manulife Financial
Performance |
| Timeline |
| NORDIC HALIBUT AS |
| Manulife Financial |
NORDIC HALIBUT and Manulife Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORDIC HALIBUT and Manulife Financial
The main advantage of trading using opposite NORDIC HALIBUT and Manulife Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORDIC HALIBUT position performs unexpectedly, Manulife Financial 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 Manulife Financial will offset losses from the drop in Manulife Financial's long position.| NORDIC HALIBUT vs. HEALTHCARE REAL A | NORDIC HALIBUT vs. ANTA SPORTS PRODUCT | NORDIC HALIBUT vs. Big 5 Sporting | NORDIC HALIBUT vs. ATRYS HEALTH SA |
| Manulife Financial vs. PREMIER FOODS | Manulife Financial vs. CarsalesCom | Manulife Financial vs. SALESFORCE INC CDR | Manulife Financial vs. MUTUIONLINE |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |