Correlation Between Manulife Fin and Manulife Finl
Can any of the company-specific risk be diversified away by investing in both Manulife Fin and Manulife Finl 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 Manulife Finl 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 Manulife Finl Srs, you can compare the effects of market volatilities on Manulife Fin and Manulife Finl 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 Manulife Finl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Fin and Manulife Finl.
Diversification Opportunities for Manulife Fin and Manulife Finl
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Manulife and Manulife is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Fin Non and Manulife Finl Srs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Finl Srs 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 Manulife Finl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Finl Srs has no effect on the direction of Manulife Fin i.e., Manulife Fin and Manulife Finl go up and down completely randomly.
Pair Corralation between Manulife Fin and Manulife Finl
Assuming the 90 days trading horizon Manulife Fin Non is expected to under-perform the Manulife Finl. In addition to that, Manulife Fin is 1.4 times more volatile than Manulife Finl Srs. It trades about 0.0 of its total potential returns per unit of risk. Manulife Finl Srs is currently generating about 0.05 per unit of volatility. If you would invest 1,860 in Manulife Finl Srs on August 29, 2024 and sell it today you would earn a total of 75.00 from holding Manulife Finl Srs or generate 4.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Fin Non vs. Manulife Finl Srs
Performance |
| Timeline |
| Manulife Fin Non |
| Manulife Finl Srs |
Manulife Fin and Manulife Finl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Fin and Manulife Finl
The main advantage of trading using opposite Manulife Fin and Manulife Finl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Fin position performs unexpectedly, Manulife Finl 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 Manulife Finl will offset losses from the drop in Manulife Finl's long position.| Manulife Fin vs. QC Copper and | Manulife Fin vs. CVS HEALTH CDR | Manulife Fin vs. DRI Healthcare Trust | Manulife Fin vs. Air Canada |
| Manulife Finl vs. US Financial 15 | Manulife Finl vs. Leons Furniture Limited | Manulife Finl vs. iA Financial | Manulife Finl vs. Canso Credit Trust |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |