Correlation Between Dow Jones and Manulife Global
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By analyzing existing cross correlation between Dow Jones Industrial and Manulife Global Equity, you can compare the effects of market volatilities on Dow Jones and Manulife Global 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 Dow Jones with a short position of Manulife Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Manulife Global.
Diversification Opportunities for Dow Jones and Manulife Global
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dow and Manulife is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Manulife Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Global Equity and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with Manulife Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Global Equity has no effect on the direction of Dow Jones i.e., Dow Jones and Manulife Global go up and down completely randomly.
Pair Corralation between Dow Jones and Manulife Global
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 1.24 times more return on investment than Manulife Global. However, Dow Jones is 1.24 times more volatile than Manulife Global Equity. It trades about 0.09 of its potential returns per unit of risk. Manulife Global Equity is currently generating about 0.08 per unit of risk. If you would invest 3,755,792 in Dow Jones Industrial on September 14, 2024 and sell it today you would earn a total of 635,620 from holding Dow Jones Industrial or generate 16.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Dow Jones Industrial vs. Manulife Global Equity
Performance |
| Timeline |
Dow Jones and Manulife Global Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Manulife Global Equity
Pair trading matchups for Manulife Global
Pair Trading with Dow Jones and Manulife Global
The main advantage of trading using opposite Dow Jones and Manulife Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Manulife Global 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 Global will offset losses from the drop in Manulife Global's long position.| Dow Jones vs. Hurco Companies | Dow Jones vs. Tyson Foods | Dow Jones vs. MYR Group | Dow Jones vs. Cannae Holdings |
| Manulife Global vs. Edgepoint Global Portfolio | Manulife Global vs. RBC Global Equity | Manulife Global vs. Invesco Global Companies | Manulife Global vs. TD Comfort Aggressive |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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