Correlation Between Manulife Financial and Monde Nissin
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Monde Nissin 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 Monde Nissin 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 Monde Nissin Corp, you can compare the effects of market volatilities on Manulife Financial and Monde Nissin 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 Monde Nissin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Monde Nissin.
Diversification Opportunities for Manulife Financial and Monde Nissin
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Manulife and Monde is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Monde Nissin Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monde Nissin Corp 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 Monde Nissin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monde Nissin Corp has no effect on the direction of Manulife Financial i.e., Manulife Financial and Monde Nissin go up and down completely randomly.
Pair Corralation between Manulife Financial and Monde Nissin
Assuming the 90 days trading horizon Manulife Financial Corp is expected to generate 2.18 times more return on investment than Monde Nissin. However, Manulife Financial is 2.18 times more volatile than Monde Nissin Corp. It trades about 0.07 of its potential returns per unit of risk. Monde Nissin Corp is currently generating about 0.0 per unit of risk. If you would invest 82,527 in Manulife Financial Corp on August 25, 2024 and sell it today you would earn a total of 98,673 from holding Manulife Financial Corp or generate 119.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 61.2% |
| Values | Daily Returns |
Manulife Financial Corp vs. Monde Nissin Corp
Performance |
| Timeline |
| Manulife Financial Corp |
| Monde Nissin Corp |
Manulife Financial and Monde Nissin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Monde Nissin
The main advantage of trading using opposite Manulife Financial and Monde Nissin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Monde Nissin 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 Monde Nissin will offset losses from the drop in Monde Nissin's long position.| Manulife Financial vs. National Reinsurance | Manulife Financial vs. Allhome Corp | Manulife Financial vs. Jollibee Foods Corp | Manulife Financial vs. LFM Properties Corp |
| Monde Nissin vs. Converge Information Communications | Monde Nissin vs. Top Frontier Investment | Monde Nissin vs. Philippine Business Bank | Monde Nissin vs. Globe Telecom |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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