Correlation Between Advantage Oil and Manulife Financial
Can any of the company-specific risk be diversified away by investing in both Advantage Oil 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 Advantage Oil and Manulife Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantage Oil Gas and Manulife Financial Corp, you can compare the effects of market volatilities on Advantage Oil 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 Advantage Oil with a short position of Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Oil and Manulife Financial.
Diversification Opportunities for Advantage Oil and Manulife Financial
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advantage and Manulife is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Oil Gas and Manulife Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Financial Corp and Advantage Oil 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 Advantage Oil Gas 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 Corp has no effect on the direction of Advantage Oil i.e., Advantage Oil and Manulife Financial go up and down completely randomly.
Pair Corralation between Advantage Oil and Manulife Financial
Assuming the 90 days trading horizon Advantage Oil Gas is expected to under-perform the Manulife Financial. In addition to that, Advantage Oil is 1.77 times more volatile than Manulife Financial Corp. It trades about -0.08 of its total potential returns per unit of risk. Manulife Financial Corp is currently generating about 0.18 per unit of volatility. If you would invest 3,482 in Manulife Financial Corp on September 1, 2024 and sell it today you would earn a total of 1,025 from holding Manulife Financial Corp or generate 29.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advantage Oil Gas vs. Manulife Financial Corp
Performance |
| Timeline |
| Advantage Oil Gas |
| Manulife Financial Corp |
Advantage Oil and Manulife Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantage Oil and Manulife Financial
The main advantage of trading using opposite Advantage Oil and Manulife Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Oil 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.| Advantage Oil vs. Birchcliff Energy | Advantage Oil vs. NuVista Energy | Advantage Oil vs. Kelt Exploration | Advantage Oil vs. Peyto ExplorationDevelopment Corp |
| Manulife Financial vs. Bank of Nova | Manulife Financial vs. Sun Life Financial | Manulife Financial vs. Toronto Dominion Bank | Manulife Financial vs. Royal Bank of |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| 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 | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |