Correlation Between Ford and Manulife Global
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By analyzing existing cross correlation between Ford Motor and Manulife Global Equity, you can compare the effects of market volatilities on Ford 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 Ford with a short position of Manulife Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Manulife Global.
Diversification Opportunities for Ford and Manulife Global
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ford and Manulife is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor 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 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 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 Ford i.e., Ford and Manulife Global go up and down completely randomly.
Pair Corralation between Ford and Manulife Global
Taking into account the 90-day investment horizon Ford Motor is expected to under-perform the Manulife Global. In addition to that, Ford is 4.07 times more volatile than Manulife Global Equity. It trades about 0.0 of its total potential returns per unit of risk. Manulife Global Equity is currently generating about 0.08 per unit of volatility. If you would invest 3,992 in Manulife Global Equity on September 14, 2024 and sell it today you would earn a total of 468.00 from holding Manulife Global Equity or generate 11.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
Ford Motor vs. Manulife Global Equity
Performance |
| Timeline |
| Ford Motor |
| Manulife Global Equity |
Ford and Manulife Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Manulife Global
The main advantage of trading using opposite Ford and Manulife Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford 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.The idea behind Ford Motor and Manulife Global Equity 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 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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