Correlation Between Manulife Financial and Premier Health
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Premier Health 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 Premier Health 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 Premier Health of, you can compare the effects of market volatilities on Manulife Financial and Premier Health 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 Premier Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Premier Health.
Diversification Opportunities for Manulife Financial and Premier Health
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manulife and Premier is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Premier Health of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Health 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 Premier Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Health has no effect on the direction of Manulife Financial i.e., Manulife Financial and Premier Health go up and down completely randomly.
Pair Corralation between Manulife Financial and Premier Health
Assuming the 90 days trading horizon Manulife Financial Corp is expected to generate 0.18 times more return on investment than Premier Health. However, Manulife Financial Corp is 5.51 times less risky than Premier Health. It trades about 0.11 of its potential returns per unit of risk. Premier Health of is currently generating about 0.02 per unit of risk. If you would invest 2,369 in Manulife Financial Corp on November 27, 2024 and sell it today you would earn a total of 1,925 from holding Manulife Financial Corp or generate 81.26% 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. Premier Health of
Performance |
| Timeline |
| Manulife Financial Corp |
| Premier Health |
Manulife Financial and Premier Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Premier Health
The main advantage of trading using opposite Manulife Financial and Premier Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Premier Health 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 Premier Health will offset losses from the drop in Premier Health'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 |
| Premier Health vs. Dynacor Gold Mines | Premier Health vs. Sangoma Technologies Corp | Premier Health vs. Geodrill Limited | Premier Health vs. Biosyent |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |