Correlation Between Allhome Corp and Manulife Financial
Can any of the company-specific risk be diversified away by investing in both Allhome Corp 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 Allhome Corp and Manulife Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allhome Corp and Manulife Financial Corp, you can compare the effects of market volatilities on Allhome Corp 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 Allhome Corp with a short position of Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allhome Corp and Manulife Financial.
Diversification Opportunities for Allhome Corp and Manulife Financial
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Allhome and Manulife is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Allhome Corp 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 Allhome Corp 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 Allhome Corp 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 Allhome Corp i.e., Allhome Corp and Manulife Financial go up and down completely randomly.
Pair Corralation between Allhome Corp and Manulife Financial
Assuming the 90 days trading horizon Allhome Corp is expected to under-perform the Manulife Financial. But the stock apears to be less risky and, when comparing its historical volatility, Allhome Corp is 2.92 times less risky than Manulife Financial. The stock trades about -0.11 of its potential returns per unit of risk. The Manulife Financial Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 95,388 in Manulife Financial Corp on August 29, 2024 and sell it today you would earn a total of 104,612 from holding Manulife Financial Corp or generate 109.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 70.79% |
| Values | Daily Returns |
Allhome Corp vs. Manulife Financial Corp
Performance |
| Timeline |
| Allhome Corp |
| Manulife Financial Corp |
Allhome Corp and Manulife Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allhome Corp and Manulife Financial
The main advantage of trading using opposite Allhome Corp and Manulife Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allhome Corp 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.| Allhome Corp vs. Globe Telecom | Allhome Corp vs. Converge Information Communications | Allhome Corp vs. SM Investments Corp | Allhome Corp vs. Security Bank Corp |
| Manulife Financial vs. Sun Life Financial | Manulife Financial vs. National Reinsurance | 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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