Correlation Between Manulife Financial and SYSTEMAIR
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and SYSTEMAIR 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 SYSTEMAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manulife Financial and SYSTEMAIR AB, you can compare the effects of market volatilities on Manulife Financial and SYSTEMAIR 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 SYSTEMAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and SYSTEMAIR.
Diversification Opportunities for Manulife Financial and SYSTEMAIR
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Manulife and SYSTEMAIR is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial and SYSTEMAIR AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYSTEMAIR AB 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 are associated (or correlated) with SYSTEMAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYSTEMAIR AB has no effect on the direction of Manulife Financial i.e., Manulife Financial and SYSTEMAIR go up and down completely randomly.
Pair Corralation between Manulife Financial and SYSTEMAIR
Assuming the 90 days horizon Manulife Financial is expected to generate 0.43 times more return on investment than SYSTEMAIR. However, Manulife Financial is 2.31 times less risky than SYSTEMAIR. It trades about 0.04 of its potential returns per unit of risk. SYSTEMAIR AB is currently generating about -0.17 per unit of risk. If you would invest 2,912 in Manulife Financial on October 25, 2024 and sell it today you would earn a total of 23.00 from holding Manulife Financial or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Manulife Financial vs. SYSTEMAIR AB
Performance |
| Timeline |
| Manulife Financial |
| SYSTEMAIR AB |
Manulife Financial and SYSTEMAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and SYSTEMAIR
The main advantage of trading using opposite Manulife Financial and SYSTEMAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, SYSTEMAIR 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 SYSTEMAIR will offset losses from the drop in SYSTEMAIR's long position.| Manulife Financial vs. SQUIRREL MEDIA SA | Manulife Financial vs. SYSTEMAIR AB | Manulife Financial vs. ANTA SPORTS PRODUCT | Manulife Financial vs. Westinghouse Air Brake |
| SYSTEMAIR vs. Plastic Omnium | SYSTEMAIR vs. NEWELL RUBBERMAID | SYSTEMAIR vs. United Insurance Holdings | SYSTEMAIR vs. EAGLE MATERIALS |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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