Correlation Between Manulife Financial and Blockmate Ventures
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Blockmate Ventures 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 Blockmate Ventures 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 Blockmate Ventures, you can compare the effects of market volatilities on Manulife Financial and Blockmate Ventures 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 Blockmate Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Blockmate Ventures.
Diversification Opportunities for Manulife Financial and Blockmate Ventures
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Manulife and Blockmate is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Blockmate Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blockmate Ventures 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 Blockmate Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blockmate Ventures has no effect on the direction of Manulife Financial i.e., Manulife Financial and Blockmate Ventures go up and down completely randomly.
Pair Corralation between Manulife Financial and Blockmate Ventures
Assuming the 90 days trading horizon Manulife Financial is expected to generate 29.18 times less return on investment than Blockmate Ventures. But when comparing it to its historical volatility, Manulife Financial Corp is 17.16 times less risky than Blockmate Ventures. It trades about 0.21 of its potential returns per unit of risk. Blockmate Ventures is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 3.00 in Blockmate Ventures on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Blockmate Ventures or generate 333.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Financial Corp vs. Blockmate Ventures
Performance |
| Timeline |
| Manulife Financial Corp |
| Blockmate Ventures |
Manulife Financial and Blockmate Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Blockmate Ventures
The main advantage of trading using opposite Manulife Financial and Blockmate Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Blockmate Ventures 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 Blockmate Ventures will offset losses from the drop in Blockmate Ventures' 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 |
| Blockmate Ventures vs. Telus Corp | Blockmate Ventures vs. Toronto Dominion Bank | Blockmate Ventures vs. Manulife Financial Corp | Blockmate Ventures vs. Canadian Natural Resources |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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