Correlation Between GM and Manulife Dividend
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By analyzing existing cross correlation between General Motors and Manulife Dividend Income, you can compare the effects of market volatilities on GM 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 GM with a short position of Manulife Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Manulife Dividend.
Diversification Opportunities for GM and Manulife Dividend
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GM and Manulife is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding General Motors 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 GM 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 General Motors 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 GM i.e., GM and Manulife Dividend go up and down completely randomly.
Pair Corralation between GM and Manulife Dividend
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the Manulife Dividend. In addition to that, GM is 6.7 times more volatile than Manulife Dividend Income. It trades about -0.15 of its total potential returns per unit of risk. Manulife Dividend Income is currently generating about 0.31 per unit of volatility. If you would invest 1,201 in Manulife Dividend Income on September 13, 2024 and sell it today you would earn a total of 30.00 from holding Manulife Dividend Income or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
General Motors vs. Manulife Dividend Income
Performance |
| Timeline |
| General Motors |
| Manulife Dividend Income |
GM and Manulife Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Manulife Dividend
The main advantage of trading using opposite GM and Manulife Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM 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 General Motors 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. RBC Portefeuille de | Manulife Dividend vs. TD Comfort Balanced | Manulife Dividend vs. RBC Global Equity |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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