Correlation Between Manulife Finl and Secure Energy
Can any of the company-specific risk be diversified away by investing in both Manulife Finl and Secure Energy 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 Secure Energy 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 Secure Energy Services, you can compare the effects of market volatilities on Manulife Finl and Secure Energy 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 Secure Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Finl and Secure Energy.
Diversification Opportunities for Manulife Finl and Secure Energy
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Manulife and Secure is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Finl Srs and Secure Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secure Energy Services 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 Secure Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secure Energy Services has no effect on the direction of Manulife Finl i.e., Manulife Finl and Secure Energy go up and down completely randomly.
Pair Corralation between Manulife Finl and Secure Energy
Assuming the 90 days trading horizon Manulife Finl is expected to generate 4.88 times less return on investment than Secure Energy. But when comparing it to its historical volatility, Manulife Finl Srs is 2.39 times less risky than Secure Energy. It trades about 0.05 of its potential returns per unit of risk. Secure Energy Services is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 641.00 in Secure Energy Services on September 3, 2024 and sell it today you would earn a total of 944.00 from holding Secure Energy Services or generate 147.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Finl Srs vs. Secure Energy Services
Performance |
| Timeline |
| Manulife Finl Srs |
| Secure Energy Services |
Manulife Finl and Secure Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Finl and Secure Energy
The main advantage of trading using opposite Manulife Finl and Secure Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Finl position performs unexpectedly, Secure Energy 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 Secure Energy will offset losses from the drop in Secure Energy's long position.| Manulife Finl vs. Millennium Silver Corp | Manulife Finl vs. Capstone Mining Corp | Manulife Finl vs. CI Financial Corp | Manulife Finl vs. Toronto Dominion Bank |
| Secure Energy vs. CES Energy Solutions | Secure Energy vs. Ensign Energy Services | Secure Energy vs. Enerflex | Secure Energy vs. Pason Systems |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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