Correlation Between Calculus VCT and Manulife Financial
Can any of the company-specific risk be diversified away by investing in both Calculus VCT 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 Calculus VCT and Manulife Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calculus VCT plc and Manulife Financial Corp, you can compare the effects of market volatilities on Calculus VCT 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 Calculus VCT with a short position of Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calculus VCT and Manulife Financial.
Diversification Opportunities for Calculus VCT and Manulife Financial
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Calculus and Manulife is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Calculus VCT 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 Calculus VCT 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 Calculus VCT 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 Calculus VCT i.e., Calculus VCT and Manulife Financial go up and down completely randomly.
Pair Corralation between Calculus VCT and Manulife Financial
Assuming the 90 days trading horizon Calculus VCT is expected to generate 13.74 times less return on investment than Manulife Financial. But when comparing it to its historical volatility, Calculus VCT plc is 1.19 times less risky than Manulife Financial. It trades about 0.02 of its potential returns per unit of risk. 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 Against |
| Strength | Significant |
| Accuracy | 36.42% |
| Values | Daily Returns |
Calculus VCT plc vs. Manulife Financial Corp
Performance |
| Timeline |
| Calculus VCT plc |
| Manulife Financial Corp |
Calculus VCT and Manulife Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calculus VCT and Manulife Financial
The main advantage of trading using opposite Calculus VCT and Manulife Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calculus VCT 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.| Calculus VCT vs. Elmos Semiconductor SE | Calculus VCT vs. Monks Investment Trust | Calculus VCT vs. Taiwan Semiconductor Manufacturing | Calculus VCT vs. BlackRock Frontiers Investment |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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