Correlation Between Manulife Smart and Manulife Smart
Can any of the company-specific risk be diversified away by investing in both Manulife Smart 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 Manulife Smart and Manulife Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manulife Smart International and Manulife Smart Short Term, you can compare the effects of market volatilities on Manulife Smart 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 Manulife Smart with a short position of Manulife Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Smart and Manulife Smart.
Diversification Opportunities for Manulife Smart and Manulife Smart
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manulife and Manulife is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Smart International and Manulife Smart Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Smart Short and Manulife Smart 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 Manulife Smart International 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 Short has no effect on the direction of Manulife Smart i.e., Manulife Smart and Manulife Smart go up and down completely randomly.
Pair Corralation between Manulife Smart and Manulife Smart
Assuming the 90 days trading horizon Manulife Smart International is expected to generate 2.29 times more return on investment than Manulife Smart. However, Manulife Smart is 2.29 times more volatile than Manulife Smart Short Term. It trades about 0.11 of its potential returns per unit of risk. Manulife Smart Short Term is currently generating about 0.17 per unit of risk. If you would invest 1,089 in Manulife Smart International on September 3, 2024 and sell it today you would earn a total of 116.00 from holding Manulife Smart International or generate 10.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.56% |
| Values | Daily Returns |
Manulife Smart International vs. Manulife Smart Short Term
Performance |
| Timeline |
| Manulife Smart Inter |
| Manulife Smart Short |
Manulife Smart and Manulife Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Smart and Manulife Smart
The main advantage of trading using opposite Manulife Smart and Manulife Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Smart 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.| Manulife Smart vs. First Asset Energy | Manulife Smart vs. First Asset Tech | Manulife Smart vs. Harvest Equal Weight | Manulife Smart vs. CI Canada Lifeco |
| Manulife Smart vs. Manulife Multifactor Mid | Manulife Smart vs. Manulife Smart International | 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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