Correlation Between Manulife Financial and Stingray
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Stingray 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 Stingray 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 Stingray Group, you can compare the effects of market volatilities on Manulife Financial and Stingray 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 Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Stingray.
Diversification Opportunities for Manulife Financial and Stingray
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Manulife and Stingray is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group 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 Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of Manulife Financial i.e., Manulife Financial and Stingray go up and down completely randomly.
Pair Corralation between Manulife Financial and Stingray
Assuming the 90 days trading horizon Manulife Financial Corp is expected to generate 0.53 times more return on investment than Stingray. However, Manulife Financial Corp is 1.9 times less risky than Stingray. It trades about 0.13 of its potential returns per unit of risk. Stingray Group is currently generating about 0.07 per unit of risk. If you would invest 2,223 in Manulife Financial Corp on September 5, 2024 and sell it today you would earn a total of 2,290 from holding Manulife Financial Corp or generate 103.01% 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. Stingray Group
Performance |
| Timeline |
| Manulife Financial Corp |
| Stingray Group |
Manulife Financial and Stingray Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Stingray
The main advantage of trading using opposite Manulife Financial and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray'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 |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |