Correlation Between Ford and Manulife Dividend
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ford Motor and Manulife Dividend Income, you can compare the effects of market volatilities on Ford 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 Ford with a short position of Manulife Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Manulife Dividend.
Diversification Opportunities for Ford and Manulife Dividend
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ford and Manulife is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor 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 Ford 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 Ford Motor 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 Ford i.e., Ford and Manulife Dividend go up and down completely randomly.
Pair Corralation between Ford and Manulife Dividend
Taking into account the 90-day investment horizon Ford Motor is expected to generate 0.62 times more return on investment than Manulife Dividend. However, Ford Motor is 1.61 times less risky than Manulife Dividend. It trades about 0.19 of its potential returns per unit of risk. Manulife Dividend Income is currently generating about -0.21 per unit of risk. If you would invest 974.00 in Ford Motor on October 20, 2024 and sell it today you would earn a total of 44.00 from holding Ford Motor or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Ford Motor vs. Manulife Dividend Income
Performance |
| Timeline |
| Ford Motor |
| Manulife Dividend Income |
Ford and Manulife Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Manulife Dividend
The main advantage of trading using opposite Ford and Manulife Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford 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.The idea behind Ford Motor and Manulife Dividend Income pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Manulife Dividend vs. RBC Select Balanced | Manulife Dividend vs. PIMCO Monthly Income | Manulife Dividend vs. RBC Portefeuille de | Manulife Dividend vs. Edgepoint Global Portfolio |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |