Correlation Between Manulife Financial and Ping An
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Ping An 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 Ping An 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 Ping An Insurance, you can compare the effects of market volatilities on Manulife Financial and Ping An 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 Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Ping An.
Diversification Opportunities for Manulife Financial and Ping An
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Manulife and Ping is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Ping An Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Insurance 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 Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Insurance has no effect on the direction of Manulife Financial i.e., Manulife Financial and Ping An go up and down completely randomly.
Pair Corralation between Manulife Financial and Ping An
Considering the 90-day investment horizon Manulife Financial Corp is expected to generate 1.19 times more return on investment than Ping An. However, Manulife Financial is 1.19 times more volatile than Ping An Insurance. It trades about 0.25 of its potential returns per unit of risk. Ping An Insurance is currently generating about -0.37 per unit of risk. If you would invest 3,002 in Manulife Financial Corp on August 24, 2024 and sell it today you would earn a total of 266.00 from holding Manulife Financial Corp or generate 8.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Manulife Financial Corp vs. Ping An Insurance
Performance |
| Timeline |
| Manulife Financial Corp |
| Ping An Insurance |
Manulife Financial and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Ping An
The main advantage of trading using opposite Manulife Financial and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.| Manulife Financial vs. Prudential Financial | Manulife Financial vs. MetLife | Manulife Financial vs. Unum Group | Manulife Financial vs. Jackson Financial |
| Ping An vs. Ping An Insurance | Ping An vs. CNO Financial Group | Ping An vs. Genworth Financial | Ping An vs. MetLife Preferred Stock |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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