Correlation Between Advent Wireless and Manulife Financial
Can any of the company-specific risk be diversified away by investing in both Advent Wireless 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 Advent Wireless and Manulife Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advent Wireless and Manulife Financial Corp, you can compare the effects of market volatilities on Advent Wireless 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 Advent Wireless with a short position of Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Wireless and Manulife Financial.
Diversification Opportunities for Advent Wireless and Manulife Financial
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advent and Manulife is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Advent Wireless 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 Advent Wireless 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 Advent Wireless 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 Advent Wireless i.e., Advent Wireless and Manulife Financial go up and down completely randomly.
Pair Corralation between Advent Wireless and Manulife Financial
If you would invest 1,673 in Manulife Financial Corp on October 28, 2024 and sell it today you would earn a total of 168.00 from holding Manulife Financial Corp or generate 10.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advent Wireless vs. Manulife Financial Corp
Performance |
| Timeline |
| Advent Wireless |
| Manulife Financial Corp |
Advent Wireless and Manulife Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Wireless and Manulife Financial
The main advantage of trading using opposite Advent Wireless and Manulife Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Wireless 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.| Advent Wireless vs. Vista Gold | Advent Wireless vs. Silver Bear Resources | Advent Wireless vs. TeraGo Inc | Advent Wireless vs. Condor Energies |
| Manulife Financial vs. Westshore Terminals Investment | Manulife Financial vs. Brookfield Office Properties | Manulife Financial vs. Diversified Royalty Corp | Manulife Financial vs. Solid Impact Investments |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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