Correlation Between Manulife Fin and Arbor Metals
Can any of the company-specific risk be diversified away by investing in both Manulife Fin and Arbor Metals 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 Fin and Arbor Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manulife Fin Non and Arbor Metals Corp, you can compare the effects of market volatilities on Manulife Fin and Arbor Metals 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 Fin with a short position of Arbor Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Fin and Arbor Metals.
Diversification Opportunities for Manulife Fin and Arbor Metals
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Manulife and Arbor is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Fin Non and Arbor Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arbor Metals Corp and Manulife Fin 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 Fin Non are associated (or correlated) with Arbor Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arbor Metals Corp has no effect on the direction of Manulife Fin i.e., Manulife Fin and Arbor Metals go up and down completely randomly.
Pair Corralation between Manulife Fin and Arbor Metals
Assuming the 90 days trading horizon Manulife Fin Non is expected to generate 0.15 times more return on investment than Arbor Metals. However, Manulife Fin Non is 6.82 times less risky than Arbor Metals. It trades about 0.09 of its potential returns per unit of risk. Arbor Metals Corp is currently generating about -0.07 per unit of risk. If you would invest 1,739 in Manulife Fin Non on September 14, 2024 and sell it today you would earn a total of 671.00 from holding Manulife Fin Non or generate 38.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Fin Non vs. Arbor Metals Corp
Performance |
| Timeline |
| Manulife Fin Non |
| Arbor Metals Corp |
Manulife Fin and Arbor Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Fin and Arbor Metals
The main advantage of trading using opposite Manulife Fin and Arbor Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Fin position performs unexpectedly, Arbor Metals 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 Arbor Metals will offset losses from the drop in Arbor Metals' long position.| Manulife Fin vs. Arbor Metals Corp | Manulife Fin vs. InPlay Oil Corp | Manulife Fin vs. Aya Gold Silver | Manulife Fin vs. TGS Esports |
| Arbor Metals vs. Foraco International SA | Arbor Metals vs. Geodrill Limited | Arbor Metals vs. Major Drilling Group | Arbor Metals vs. Bri Chem Corp |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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