Correlation Between Manulife Financial and Golden Pursuit
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Golden Pursuit 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 Golden Pursuit 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 Golden Pursuit Resources, you can compare the effects of market volatilities on Manulife Financial and Golden Pursuit 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 Golden Pursuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Golden Pursuit.
Diversification Opportunities for Manulife Financial and Golden Pursuit
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Manulife and Golden is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Golden Pursuit Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Pursuit Resources 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 Golden Pursuit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Pursuit Resources has no effect on the direction of Manulife Financial i.e., Manulife Financial and Golden Pursuit go up and down completely randomly.
Pair Corralation between Manulife Financial and Golden Pursuit
Assuming the 90 days trading horizon Manulife Financial is expected to generate 3.58 times less return on investment than Golden Pursuit. But when comparing it to its historical volatility, Manulife Financial Corp is 4.83 times less risky than Golden Pursuit. It trades about 0.06 of its potential returns per unit of risk. Golden Pursuit Resources is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Golden Pursuit Resources on November 3, 2024 and sell it today you would earn a total of 5.00 from holding Golden Pursuit Resources or generate 35.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Financial Corp vs. Golden Pursuit Resources
Performance |
| Timeline |
| Manulife Financial Corp |
| Golden Pursuit Resources |
Manulife Financial and Golden Pursuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Golden Pursuit
The main advantage of trading using opposite Manulife Financial and Golden Pursuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Golden Pursuit 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 Golden Pursuit will offset losses from the drop in Golden Pursuit's long position.| Manulife Financial vs. CNJ Capital Investments | Manulife Financial vs. Computer Modelling Group | Manulife Financial vs. Partners Value Investments | Manulife Financial vs. Firan Technology Group |
| Golden Pursuit vs. Highwood Asset Management | Golden Pursuit vs. Postmedia Network Canada | Golden Pursuit vs. Bird Construction | Golden Pursuit vs. TGS Esports |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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