Correlation Between Manulife Finl and Canopy Growth
Can any of the company-specific risk be diversified away by investing in both Manulife Finl and Canopy Growth 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 Canopy Growth 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 Canopy Growth Corp, you can compare the effects of market volatilities on Manulife Finl and Canopy Growth 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 Canopy Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Finl and Canopy Growth.
Diversification Opportunities for Manulife Finl and Canopy Growth
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Manulife and Canopy is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Finl Srs and Canopy Growth Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canopy Growth Corp 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 Canopy Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canopy Growth Corp has no effect on the direction of Manulife Finl i.e., Manulife Finl and Canopy Growth go up and down completely randomly.
Pair Corralation between Manulife Finl and Canopy Growth
Assuming the 90 days trading horizon Manulife Finl Srs is expected to generate 0.23 times more return on investment than Canopy Growth. However, Manulife Finl Srs is 4.33 times less risky than Canopy Growth. It trades about 0.12 of its potential returns per unit of risk. Canopy Growth Corp is currently generating about -0.49 per unit of risk. If you would invest 1,985 in Manulife Finl Srs on November 3, 2024 and sell it today you would earn a total of 38.00 from holding Manulife Finl Srs or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Finl Srs vs. Canopy Growth Corp
Performance |
| Timeline |
| Manulife Finl Srs |
| Canopy Growth Corp |
Manulife Finl and Canopy Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Finl and Canopy Growth
The main advantage of trading using opposite Manulife Finl and Canopy Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Finl position performs unexpectedly, Canopy Growth 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 Canopy Growth will offset losses from the drop in Canopy Growth's long position.| Manulife Finl vs. AKITA Drilling | Manulife Finl vs. Ramp Metals | Manulife Finl vs. Rogers Communications | Manulife Finl vs. Mako Mining Corp |
| Canopy Growth vs. Aurora Cannabis | Canopy Growth vs. Cronos Group | Canopy Growth vs. Air Canada | Canopy Growth vs. Shopify |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |