Correlation Between Global Atomic and Manulife Smart
Can any of the company-specific risk be diversified away by investing in both Global Atomic 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 Global Atomic and Manulife Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Atomic Corp and Manulife Smart International, you can compare the effects of market volatilities on Global Atomic 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 Global Atomic with a short position of Manulife Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Atomic and Manulife Smart.
Diversification Opportunities for Global Atomic and Manulife Smart
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Global and Manulife is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Global Atomic Corp 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 Global Atomic 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 Global Atomic Corp 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 Global Atomic i.e., Global Atomic and Manulife Smart go up and down completely randomly.
Pair Corralation between Global Atomic and Manulife Smart
Assuming the 90 days trading horizon Global Atomic Corp is expected to under-perform the Manulife Smart. In addition to that, Global Atomic is 4.59 times more volatile than Manulife Smart International. It trades about -0.08 of its total potential returns per unit of risk. Manulife Smart International is currently generating about -0.22 per unit of volatility. If you would invest 1,229 in Manulife Smart International on August 28, 2024 and sell it today you would lose (24.00) from holding Manulife Smart International or give up 1.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Atomic Corp vs. Manulife Smart International
Performance |
| Timeline |
| Global Atomic Corp |
| Manulife Smart Inter |
Global Atomic and Manulife Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Atomic and Manulife Smart
The main advantage of trading using opposite Global Atomic and Manulife Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Atomic 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.| Global Atomic vs. enCore Energy Corp | Global Atomic vs. GoviEx Uranium | Global Atomic vs. Baselode Energy Corp | Global Atomic vs. Sprott Physical Uranium |
| Manulife Smart vs. Global Atomic Corp | Manulife Smart vs. enCore Energy Corp | Manulife Smart vs. Fission Uranium Corp | Manulife Smart vs. NexGen Energy |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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