Correlation Between Manulife Financial and Sangoma Technologies
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Sangoma Technologies 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 Sangoma Technologies 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 Sangoma Technologies Corp, you can compare the effects of market volatilities on Manulife Financial and Sangoma Technologies 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 Sangoma Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Sangoma Technologies.
Diversification Opportunities for Manulife Financial and Sangoma Technologies
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Manulife and Sangoma is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Sangoma Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangoma Technologies Corp 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 Sangoma Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangoma Technologies Corp has no effect on the direction of Manulife Financial i.e., Manulife Financial and Sangoma Technologies go up and down completely randomly.
Pair Corralation between Manulife Financial and Sangoma Technologies
Assuming the 90 days trading horizon Manulife Financial Corp is expected to generate 0.42 times more return on investment than Sangoma Technologies. However, Manulife Financial Corp is 2.4 times less risky than Sangoma Technologies. It trades about 0.18 of its potential returns per unit of risk. Sangoma Technologies Corp is currently generating about 0.04 per unit of risk. If you would invest 3,482 in Manulife Financial Corp on August 30, 2024 and sell it today you would earn a total of 1,005 from holding Manulife Financial Corp or generate 28.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Financial Corp vs. Sangoma Technologies Corp
Performance |
| Timeline |
| Manulife Financial Corp |
| Sangoma Technologies Corp |
Manulife Financial and Sangoma Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Sangoma Technologies
The main advantage of trading using opposite Manulife Financial and Sangoma Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Sangoma Technologies 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 Sangoma Technologies will offset losses from the drop in Sangoma Technologies' 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 |
| Sangoma Technologies vs. Sylogist | Sangoma Technologies vs. Converge Technology Solutions | Sangoma Technologies vs. Propel Holdings | Sangoma Technologies vs. Vitalhub Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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