Correlation Between San Miguel and Manulife Financial
Can any of the company-specific risk be diversified away by investing in both San Miguel and Manulife Financial 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 San Miguel and Manulife Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between San Miguel Pure and Manulife Financial Corp, you can compare the effects of market volatilities on San Miguel and Manulife Financial 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 San Miguel with a short position of Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of San Miguel and Manulife Financial.
Diversification Opportunities for San Miguel and Manulife Financial
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between San and Manulife is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding San Miguel Pure and Manulife Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Financial Corp and San Miguel 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 San Miguel Pure are associated (or correlated) with Manulife Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Financial Corp has no effect on the direction of San Miguel i.e., San Miguel and Manulife Financial go up and down completely randomly.
Pair Corralation between San Miguel and Manulife Financial
Assuming the 90 days trading horizon San Miguel is expected to generate 15.8 times less return on investment than Manulife Financial. But when comparing it to its historical volatility, San Miguel Pure is 5.61 times less risky than Manulife Financial. It trades about 0.03 of its potential returns per unit of risk. Manulife Financial Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 100,057 in Manulife Financial Corp on September 3, 2024 and sell it today you would earn a total of 89,943 from holding Manulife Financial Corp or generate 89.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 68.46% |
| Values | Daily Returns |
San Miguel Pure vs. Manulife Financial Corp
Performance |
| Timeline |
| San Miguel Pure |
| Manulife Financial Corp |
San Miguel and Manulife Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with San Miguel and Manulife Financial
The main advantage of trading using opposite San Miguel and Manulife Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Miguel position performs unexpectedly, Manulife Financial 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 Financial will offset losses from the drop in Manulife Financial's long position.| San Miguel vs. Century Pacific Food | San Miguel vs. Metro Retail Stores | San Miguel vs. Pacificonline Systems | San Miguel vs. Transpacific Broadband Group |
| Manulife Financial vs. Sun Life Financial | Manulife Financial vs. GT Capital Holdings | Manulife Financial vs. Allhome Corp | Manulife Financial vs. Jollibee Foods Corp |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |