Correlation Between Manulife Finl and Ur Energy
Can any of the company-specific risk be diversified away by investing in both Manulife Finl and Ur 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 Ur 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 Ur Energy, you can compare the effects of market volatilities on Manulife Finl and Ur 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 Ur Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Finl and Ur Energy.
Diversification Opportunities for Manulife Finl and Ur Energy
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Manulife and URE is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Finl Srs and Ur Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ur Energy 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 Ur Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ur Energy has no effect on the direction of Manulife Finl i.e., Manulife Finl and Ur Energy go up and down completely randomly.
Pair Corralation between Manulife Finl and Ur Energy
Assuming the 90 days trading horizon Manulife Finl is expected to generate 25.84 times less return on investment than Ur Energy. But when comparing it to its historical volatility, Manulife Finl Srs is 4.24 times less risky than Ur Energy. It trades about 0.02 of its potential returns per unit of risk. Ur Energy is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 164.00 in Ur Energy on September 12, 2024 and sell it today you would earn a total of 14.00 from holding Ur Energy or generate 8.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Finl Srs vs. Ur Energy
Performance |
| Timeline |
| Manulife Finl Srs |
| Ur Energy |
Manulife Finl and Ur Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Finl and Ur Energy
The main advantage of trading using opposite Manulife Finl and Ur Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Finl position performs unexpectedly, Ur 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 Ur Energy will offset losses from the drop in Ur Energy's long position.| Manulife Finl vs. Manulife Financial Corp | Manulife Finl vs. Manulife Fin Non | Manulife Finl vs. Manulife Financial Corp | Manulife Finl vs. Manulife Financial Corp |
| Ur Energy vs. Denison Mines Corp | Ur Energy vs. Energy Fuels | Ur Energy vs. Laramide Resources | Ur Energy vs. Mega Uranium |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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