Correlation Between Manulife Smart and Manulife Smart
Can any of the company-specific risk be diversified away by investing in both Manulife Smart and Manulife Smart 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 Manulife Smart and Manulife Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manulife Smart Corporate and Manulife Smart Dividend, you can compare the effects of market volatilities on Manulife Smart and Manulife Smart 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 Manulife Smart with a short position of Manulife Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Smart and Manulife Smart.
Diversification Opportunities for Manulife Smart and Manulife Smart
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Manulife and Manulife is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Smart Corporate and Manulife Smart Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Smart Dividend and Manulife Smart 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 Manulife Smart Corporate are associated (or correlated) with Manulife Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Smart Dividend has no effect on the direction of Manulife Smart i.e., Manulife Smart and Manulife Smart go up and down completely randomly.
Pair Corralation between Manulife Smart and Manulife Smart
Assuming the 90 days trading horizon Manulife Smart is expected to generate 1.19 times less return on investment than Manulife Smart. But when comparing it to its historical volatility, Manulife Smart Corporate is 2.29 times less risky than Manulife Smart. It trades about 0.12 of its potential returns per unit of risk. Manulife Smart Dividend is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,169 in Manulife Smart Dividend on September 12, 2024 and sell it today you would earn a total of 193.00 from holding Manulife Smart Dividend or generate 16.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Smart Corporate vs. Manulife Smart Dividend
Performance |
| Timeline |
| Manulife Smart Corporate |
| Manulife Smart Dividend |
Manulife Smart and Manulife Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Smart and Manulife Smart
The main advantage of trading using opposite Manulife Smart and Manulife Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Smart position performs unexpectedly, Manulife Smart 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 Smart will offset losses from the drop in Manulife Smart's long position.| Manulife Smart vs. iShares Core Canadian | Manulife Smart vs. BMO Mid Corporate | Manulife Smart vs. Global X Active | Manulife Smart vs. iShares 1 10Yr Laddered |
| Manulife Smart vs. Vanguard Dividend Appreciation | Manulife Smart vs. Vanguard Total Market | Manulife Smart vs. Vanguard FTSE Developed | Manulife Smart vs. Vanguard FTSE Developed |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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