Correlation Between Manulife Financial and Financial
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Financial 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 Financial 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 Financial 15 Split, you can compare the effects of market volatilities on Manulife Financial and Financial 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 Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Financial.
Diversification Opportunities for Manulife Financial and Financial
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Manulife and Financial is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Financial 15 Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financial 15 Split 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 Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financial 15 Split has no effect on the direction of Manulife Financial i.e., Manulife Financial and Financial go up and down completely randomly.
Pair Corralation between Manulife Financial and Financial
Assuming the 90 days trading horizon Manulife Financial is expected to generate 1.49 times less return on investment than Financial. In addition to that, Manulife Financial is 4.27 times more volatile than Financial 15 Split. It trades about 0.1 of its total potential returns per unit of risk. Financial 15 Split is currently generating about 0.61 per unit of volatility. If you would invest 1,047 in Financial 15 Split on October 12, 2024 and sell it today you would earn a total of 27.00 from holding Financial 15 Split or generate 2.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Financial Corp vs. Financial 15 Split
Performance |
| Timeline |
| Manulife Financial Corp |
| Financial 15 Split |
Manulife Financial and Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Financial
The main advantage of trading using opposite Manulife Financial and Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Financial 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 Financial will offset losses from the drop in Financial's long position.| Manulife Financial vs. Rogers Communications | Manulife Financial vs. Cogeco Communications | Manulife Financial vs. Hemisphere Energy | Manulife Financial vs. Upstart Investments |
| Financial vs. North American Financial | Financial vs. Dividend 15 Split | Financial vs. Dividend Growth Split | Financial vs. Dividend 15 Split |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stocks Directory Find actively traded stocks across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |