Correlation Between CI Canada and Manulife Smart
Can any of the company-specific risk be diversified away by investing in both CI Canada and Manulife Smart 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 CI Canada and Manulife Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CI Canada Lifeco and Manulife Smart International, you can compare the effects of market volatilities on CI Canada and Manulife Smart 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 CI Canada with a short position of Manulife Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of CI Canada and Manulife Smart.
Diversification Opportunities for CI Canada and Manulife Smart
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FLI and Manulife is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding CI Canada Lifeco and Manulife Smart International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Smart Inter and CI Canada 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 CI Canada Lifeco are associated (or correlated) with Manulife Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Smart Inter has no effect on the direction of CI Canada i.e., CI Canada and Manulife Smart go up and down completely randomly.
Pair Corralation between CI Canada and Manulife Smart
Assuming the 90 days trading horizon CI Canada Lifeco is expected to generate 2.02 times more return on investment than Manulife Smart. However, CI Canada is 2.02 times more volatile than Manulife Smart International. It trades about 0.06 of its potential returns per unit of risk. Manulife Smart International is currently generating about 0.06 per unit of risk. If you would invest 885.00 in CI Canada Lifeco on September 4, 2024 and sell it today you would earn a total of 307.00 from holding CI Canada Lifeco or generate 34.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
CI Canada Lifeco vs. Manulife Smart International
Performance |
| Timeline |
| CI Canada Lifeco |
| Manulife Smart Inter |
CI Canada and Manulife Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CI Canada and Manulife Smart
The main advantage of trading using opposite CI Canada and Manulife Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CI Canada position performs unexpectedly, Manulife Smart 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 Smart will offset losses from the drop in Manulife Smart's long position.| CI Canada vs. First Asset Energy | CI Canada vs. CI Gold Giants | CI Canada vs. Harvest Equal Weight | CI Canada vs. First Asset Tech |
| Manulife Smart vs. Manulife Multifactor Mid | Manulife Smart vs. Manulife Smart Short Term | Manulife Smart vs. Manulife Smart Corporate | Manulife Smart vs. Manulife Multifactor Developed |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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