Correlation Between Calian Technologies and Manulife Financial
Can any of the company-specific risk be diversified away by investing in both Calian Technologies 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 Calian Technologies and Manulife Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calian Technologies and Manulife Financial Corp, you can compare the effects of market volatilities on Calian Technologies 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 Calian Technologies with a short position of Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calian Technologies and Manulife Financial.
Diversification Opportunities for Calian Technologies and Manulife Financial
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Calian and Manulife is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Calian Technologies 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 Calian Technologies 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 Calian Technologies 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 Calian Technologies i.e., Calian Technologies and Manulife Financial go up and down completely randomly.
Pair Corralation between Calian Technologies and Manulife Financial
Assuming the 90 days trading horizon Calian Technologies is expected to under-perform the Manulife Financial. In addition to that, Calian Technologies is 1.48 times more volatile than Manulife Financial Corp. It trades about -0.01 of its total potential returns per unit of risk. Manulife Financial Corp is currently generating about 0.14 per unit of volatility. If you would invest 1,665 in Manulife Financial Corp on October 11, 2024 and sell it today you would earn a total of 93.00 from holding Manulife Financial Corp or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
Calian Technologies vs. Manulife Financial Corp
Performance |
| Timeline |
| Calian Technologies |
| Manulife Financial Corp |
Calian Technologies and Manulife Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calian Technologies and Manulife Financial
The main advantage of trading using opposite Calian Technologies and Manulife Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calian Technologies 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.| Calian Technologies vs. Enghouse Systems | Calian Technologies vs. Jamieson Wellness | Calian Technologies vs. TECSYS Inc | Calian Technologies vs. Descartes Systems Group |
| Manulife Financial vs. Ramp Metals | Manulife Financial vs. AKITA Drilling | Manulife Financial vs. Dream Office Real | Manulife Financial vs. Mako Mining Corp |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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