Correlation Between Cboe UK and Manulife Financial
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By analyzing existing cross correlation between Cboe UK Consumer and Manulife Financial Corp, you can compare the effects of market volatilities on Cboe UK 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 Cboe UK with a short position of Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Manulife Financial.
Diversification Opportunities for Cboe UK and Manulife Financial
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cboe and Manulife is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer 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 Cboe UK 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 Cboe UK Consumer 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 Cboe UK i.e., Cboe UK and Manulife Financial go up and down completely randomly.
Pair Corralation between Cboe UK and Manulife Financial
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.53 times more return on investment than Manulife Financial. However, Cboe UK Consumer is 1.89 times less risky than Manulife Financial. It trades about -0.33 of its potential returns per unit of risk. Manulife Financial Corp is currently generating about -0.47 per unit of risk. If you would invest 3,308,652 in Cboe UK Consumer on October 12, 2024 and sell it today you would lose (140,026) from holding Cboe UK Consumer or give up 4.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 40.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. Manulife Financial Corp
Performance |
| Timeline |
Cboe UK and Manulife Financial Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Manulife Financial Corp
Pair trading matchups for Manulife Financial
Pair Trading with Cboe UK and Manulife Financial
The main advantage of trading using opposite Cboe UK and Manulife Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK 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.| Cboe UK vs. Live Nation Entertainment | Cboe UK vs. JD Sports Fashion | Cboe UK vs. Raymond James Financial | Cboe UK vs. TBC Bank Group |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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