Correlation Between European Residential and Manulife Dividend
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By analyzing existing cross correlation between European Residential Real and Manulife Dividend Income, you can compare the effects of market volatilities on European Residential and Manulife Dividend 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 European Residential with a short position of Manulife Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of European Residential and Manulife Dividend.
Diversification Opportunities for European Residential and Manulife Dividend
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between European and Manulife is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding European Residential Real and Manulife Dividend Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Dividend Income and European Residential 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 European Residential Real are associated (or correlated) with Manulife Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Dividend Income has no effect on the direction of European Residential i.e., European Residential and Manulife Dividend go up and down completely randomly.
Pair Corralation between European Residential and Manulife Dividend
Assuming the 90 days trading horizon European Residential Real is expected to generate 3.08 times more return on investment than Manulife Dividend. However, European Residential is 3.08 times more volatile than Manulife Dividend Income. It trades about 0.05 of its potential returns per unit of risk. Manulife Dividend Income is currently generating about 0.08 per unit of risk. If you would invest 260.00 in European Residential Real on September 14, 2024 and sell it today you would earn a total of 107.00 from holding European Residential Real or generate 41.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
European Residential Real vs. Manulife Dividend Income
Performance |
| Timeline |
| European Residential Real |
| Manulife Dividend Income |
European Residential and Manulife Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with European Residential and Manulife Dividend
The main advantage of trading using opposite European Residential and Manulife Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if European Residential position performs unexpectedly, Manulife Dividend 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 Dividend will offset losses from the drop in Manulife Dividend's long position.| European Residential vs. BSR Real Estate | European Residential vs. Minto Apartment Real | European Residential vs. Nexus Real Estate | European Residential vs. Morguard North American |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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