Correlation Between Athelney Trust and Manulife Financial
Can any of the company-specific risk be diversified away by investing in both Athelney Trust 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 Athelney Trust and Manulife Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athelney Trust plc and Manulife Financial Corp, you can compare the effects of market volatilities on Athelney Trust 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 Athelney Trust with a short position of Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athelney Trust and Manulife Financial.
Diversification Opportunities for Athelney Trust and Manulife Financial
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Athelney and Manulife is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Athelney Trust plc 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 Athelney Trust 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 Athelney Trust plc 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 Athelney Trust i.e., Athelney Trust and Manulife Financial go up and down completely randomly.
Pair Corralation between Athelney Trust and Manulife Financial
Assuming the 90 days trading horizon Athelney Trust plc is expected to under-perform the Manulife Financial. But the stock apears to be less risky and, when comparing its historical volatility, Athelney Trust plc is 2.07 times less risky than Manulife Financial. The stock trades about 0.0 of its potential returns per unit of risk. The Manulife Financial Corp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,323 in Manulife Financial Corp on October 12, 2024 and sell it today you would earn a total of 1,970 from holding Manulife Financial Corp or generate 84.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 36.42% |
| Values | Daily Returns |
Athelney Trust plc vs. Manulife Financial Corp
Performance |
| Timeline |
| Athelney Trust plc |
| Manulife Financial Corp |
Athelney Trust and Manulife Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athelney Trust and Manulife Financial
The main advantage of trading using opposite Athelney Trust and Manulife Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athelney Trust 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.| Athelney Trust vs. BYD Co | Athelney Trust vs. Volkswagen AG Non Vtg | Athelney Trust vs. United Parcel Service | Athelney Trust vs. Jardine Matheson Holdings |
| Manulife Financial vs. Walmart | Manulife Financial vs. BYD Co | Manulife Financial vs. Volkswagen AG | Manulife Financial vs. Volkswagen AG Non Vtg |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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