Correlation Between Manulife Fin and QC Copper
Can any of the company-specific risk be diversified away by investing in both Manulife Fin and QC Copper 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 QC Copper 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 QC Copper and, you can compare the effects of market volatilities on Manulife Fin and QC Copper 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 QC Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Fin and QC Copper.
Diversification Opportunities for Manulife Fin and QC Copper
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Manulife and QCCU is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Fin Non and QC Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QC Copper 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 QC Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QC Copper has no effect on the direction of Manulife Fin i.e., Manulife Fin and QC Copper go up and down completely randomly.
Pair Corralation between Manulife Fin and QC Copper
Assuming the 90 days trading horizon Manulife Fin is expected to generate 1.13 times less return on investment than QC Copper. But when comparing it to its historical volatility, Manulife Fin Non is 6.6 times less risky than QC Copper. It trades about 0.11 of its potential returns per unit of risk. QC Copper and is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 13.00 in QC Copper and on September 1, 2024 and sell it today you would lose (1.00) from holding QC Copper and or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Fin Non vs. QC Copper and
Performance |
| Timeline |
| Manulife Fin Non |
| QC Copper |
Manulife Fin and QC Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Fin and QC Copper
The main advantage of trading using opposite Manulife Fin and QC Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Fin position performs unexpectedly, QC Copper 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 QC Copper will offset losses from the drop in QC Copper's long position.| Manulife Fin vs. Leons Furniture Limited | Manulife Fin vs. Advent Wireless | Manulife Fin vs. Perseus Mining | Manulife Fin vs. Plaza Retail REIT |
| QC Copper vs. First Majestic Silver | QC Copper vs. Ivanhoe Energy | QC Copper vs. Orezone Gold Corp | QC Copper vs. Faraday Copper 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |