Correlation Between Manulife Financial and Andrew Peller
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Andrew Peller 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 Andrew Peller 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 Andrew Peller Limited, you can compare the effects of market volatilities on Manulife Financial and Andrew Peller 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 Andrew Peller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Andrew Peller.
Diversification Opportunities for Manulife Financial and Andrew Peller
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Manulife and Andrew is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Andrew Peller Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andrew Peller Limited 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 Andrew Peller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andrew Peller Limited has no effect on the direction of Manulife Financial i.e., Manulife Financial and Andrew Peller go up and down completely randomly.
Pair Corralation between Manulife Financial and Andrew Peller
Assuming the 90 days trading horizon Manulife Financial Corp is expected to generate 0.86 times more return on investment than Andrew Peller. However, Manulife Financial Corp is 1.17 times less risky than Andrew Peller. It trades about 0.2 of its potential returns per unit of risk. Andrew Peller Limited is currently generating about 0.04 per unit of risk. If you would invest 3,351 in Manulife Financial Corp on November 3, 2024 and sell it today you would earn a total of 995.00 from holding Manulife Financial Corp or generate 29.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Financial Corp vs. Andrew Peller Limited
Performance |
| Timeline |
| Manulife Financial Corp |
| Andrew Peller Limited |
Manulife Financial and Andrew Peller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Andrew Peller
The main advantage of trading using opposite Manulife Financial and Andrew Peller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Andrew Peller 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 Andrew Peller will offset losses from the drop in Andrew Peller's long position.| Manulife Financial vs. Bank of Nova | Manulife Financial vs. Sun Life Financial | Manulife Financial vs. Toronto Dominion Bank | Manulife Financial vs. Royal Bank of |
| Andrew Peller vs. Corby Spirit and | Andrew Peller vs. Stella Jones | Andrew Peller vs. Transcontinental | Andrew Peller vs. CCL Industries |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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