Correlation Between Capstone Mining and Manulife Finl
Can any of the company-specific risk be diversified away by investing in both Capstone Mining and Manulife Finl 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 Capstone Mining and Manulife Finl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capstone Mining Corp and Manulife Finl Srs, you can compare the effects of market volatilities on Capstone Mining and Manulife Finl 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 Capstone Mining with a short position of Manulife Finl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capstone Mining and Manulife Finl.
Diversification Opportunities for Capstone Mining and Manulife Finl
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Capstone and Manulife is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Capstone Mining Corp and Manulife Finl Srs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Finl Srs and Capstone Mining 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 Capstone Mining Corp are associated (or correlated) with Manulife Finl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Finl Srs has no effect on the direction of Capstone Mining i.e., Capstone Mining and Manulife Finl go up and down completely randomly.
Pair Corralation between Capstone Mining and Manulife Finl
Assuming the 90 days horizon Capstone Mining Corp is expected to under-perform the Manulife Finl. In addition to that, Capstone Mining is 4.48 times more volatile than Manulife Finl Srs. It trades about 0.0 of its total potential returns per unit of risk. Manulife Finl Srs is currently generating about 0.08 per unit of volatility. If you would invest 1,820 in Manulife Finl Srs on September 3, 2024 and sell it today you would earn a total of 140.00 from holding Manulife Finl Srs or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capstone Mining Corp vs. Manulife Finl Srs
Performance |
| Timeline |
| Capstone Mining Corp |
| Manulife Finl Srs |
Capstone Mining and Manulife Finl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capstone Mining and Manulife Finl
The main advantage of trading using opposite Capstone Mining and Manulife Finl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capstone Mining position performs unexpectedly, Manulife Finl 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 Finl will offset losses from the drop in Manulife Finl's long position.| Capstone Mining vs. Slate Grocery REIT | Capstone Mining vs. iSign Media Solutions | Capstone Mining vs. Arbor Metals Corp | Capstone Mining vs. Talon Metals Corp |
| Manulife Finl vs. Millennium Silver Corp | Manulife Finl vs. Capstone Mining Corp | Manulife Finl vs. CI Financial Corp | Manulife Finl vs. Toronto Dominion Bank |
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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