Correlation Between Manulife Financial and Corby Spirit
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Corby Spirit 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 Corby Spirit 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 Corby Spirit and, you can compare the effects of market volatilities on Manulife Financial and Corby Spirit 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 Corby Spirit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Corby Spirit.
Diversification Opportunities for Manulife Financial and Corby Spirit
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manulife and Corby is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Corby Spirit and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corby Spirit 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 Corby Spirit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corby Spirit has no effect on the direction of Manulife Financial i.e., Manulife Financial and Corby Spirit go up and down completely randomly.
Pair Corralation between Manulife Financial and Corby Spirit
Assuming the 90 days trading horizon Manulife Financial Corp is expected to generate 1.18 times more return on investment than Corby Spirit. However, Manulife Financial is 1.18 times more volatile than Corby Spirit and. It trades about 0.2 of its potential returns per unit of risk. Corby Spirit and is currently generating about -0.02 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Financial Corp vs. Corby Spirit and
Performance |
| Timeline |
| Manulife Financial Corp |
| Corby Spirit |
Manulife Financial and Corby Spirit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Corby Spirit
The main advantage of trading using opposite Manulife Financial and Corby Spirit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Corby Spirit 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 Corby Spirit will offset losses from the drop in Corby Spirit'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 |
| Corby Spirit vs. Corby Spirit and | Corby Spirit vs. Andrew Peller Limited | Corby Spirit vs. North West | Corby Spirit vs. Exco Technologies Limited |
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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