Correlation Between Manulife Finl and Primaris Retail
Can any of the company-specific risk be diversified away by investing in both Manulife Finl and Primaris Retail 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 Finl and Primaris Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manulife Finl Srs and Primaris Retail RE, you can compare the effects of market volatilities on Manulife Finl and Primaris Retail 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 Finl with a short position of Primaris Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Finl and Primaris Retail.
Diversification Opportunities for Manulife Finl and Primaris Retail
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manulife and Primaris is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Finl Srs and Primaris Retail RE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primaris Retail RE and Manulife Finl 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 Finl Srs are associated (or correlated) with Primaris Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primaris Retail RE has no effect on the direction of Manulife Finl i.e., Manulife Finl and Primaris Retail go up and down completely randomly.
Pair Corralation between Manulife Finl and Primaris Retail
Assuming the 90 days trading horizon Manulife Finl Srs is expected to under-perform the Primaris Retail. But the preferred stock apears to be less risky and, when comparing its historical volatility, Manulife Finl Srs is 1.09 times less risky than Primaris Retail. The preferred stock trades about -0.03 of its potential returns per unit of risk. The Primaris Retail RE is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,562 in Primaris Retail RE on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Primaris Retail RE or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Finl Srs vs. Primaris Retail RE
Performance |
| Timeline |
| Manulife Finl Srs |
| Primaris Retail RE |
Manulife Finl and Primaris Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Finl and Primaris Retail
The main advantage of trading using opposite Manulife Finl and Primaris Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Finl position performs unexpectedly, Primaris Retail 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 Primaris Retail will offset losses from the drop in Primaris Retail's long position.| Manulife Finl vs. Manulife Financial Corp | Manulife Finl vs. Manulife Fin Non | Manulife Finl vs. Great West Lifeco | Manulife Finl vs. Great West Lifeco |
| Primaris Retail vs. Slate Office REIT | Primaris Retail vs. Automotive Properties Real | Primaris Retail vs. BTB Real Estate | Primaris Retail vs. CT Real Estate |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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