Correlation Between Manulife Financial and Upstart Investments
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Upstart Investments 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 Financial and Upstart Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manulife Financial Corp and Upstart Investments, you can compare the effects of market volatilities on Manulife Financial and Upstart Investments 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 Financial with a short position of Upstart Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Upstart Investments.
Diversification Opportunities for Manulife Financial and Upstart Investments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Manulife and Upstart is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Upstart Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upstart Investments and Manulife Financial 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 Financial Corp are associated (or correlated) with Upstart Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upstart Investments has no effect on the direction of Manulife Financial i.e., Manulife Financial and Upstart Investments go up and down completely randomly.
Pair Corralation between Manulife Financial and Upstart Investments
Assuming the 90 days trading horizon Manulife Financial Corp is expected to generate 0.2 times more return on investment than Upstart Investments. However, Manulife Financial Corp is 5.11 times less risky than Upstart Investments. It trades about 0.06 of its potential returns per unit of risk. Upstart Investments is currently generating about -0.01 per unit of risk. If you would invest 1,583 in Manulife Financial Corp on August 26, 2024 and sell it today you would earn a total of 522.00 from holding Manulife Financial Corp or generate 32.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 74.21% |
| Values | Daily Returns |
Manulife Financial Corp vs. Upstart Investments
Performance |
| Timeline |
| Manulife Financial Corp |
| Upstart Investments |
Manulife Financial and Upstart Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Upstart Investments
The main advantage of trading using opposite Manulife Financial and Upstart Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Upstart Investments 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 Upstart Investments will offset losses from the drop in Upstart Investments' long position.| Manulife Financial vs. Upstart Investments | Manulife Financial vs. Bip Investment Corp | Manulife Financial vs. Partners Value Investments | Manulife Financial vs. Orbit Garant Drilling |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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