Correlation Between CNJ Capital and Manulife Financial
Can any of the company-specific risk be diversified away by investing in both CNJ Capital 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 CNJ Capital and Manulife Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNJ Capital Investments and Manulife Financial Corp, you can compare the effects of market volatilities on CNJ Capital 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 CNJ Capital with a short position of Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNJ Capital and Manulife Financial.
Diversification Opportunities for CNJ Capital and Manulife Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNJ and Manulife is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CNJ Capital Investments 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 CNJ Capital 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 CNJ Capital Investments 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 CNJ Capital i.e., CNJ Capital and Manulife Financial go up and down completely randomly.
Pair Corralation between CNJ Capital and Manulife Financial
If you would invest 1,697 in Manulife Financial Corp on October 30, 2024 and sell it today you would earn a total of 183.00 from holding Manulife Financial Corp or generate 10.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNJ Capital Investments vs. Manulife Financial Corp
Performance |
| Timeline |
| CNJ Capital Investments |
| Manulife Financial Corp |
CNJ Capital and Manulife Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNJ Capital and Manulife Financial
The main advantage of trading using opposite CNJ Capital and Manulife Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNJ Capital 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.| CNJ Capital vs. Pollard Banknote Limited | CNJ Capital vs. Income Financial Trust | CNJ Capital vs. Definity Financial Corp | CNJ Capital vs. Costco Wholesale Corp |
| Manulife Financial vs. Homerun Resources | Manulife Financial vs. Advent Wireless | Manulife Financial vs. Converge Technology Solutions | Manulife Financial vs. Rogers Communications |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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