Correlation Between Manulife Global and RBC Global
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By analyzing existing cross correlation between Manulife Global Equity and RBC Global Technology, you can compare the effects of market volatilities on Manulife Global and RBC Global 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 Global with a short position of RBC Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Global and RBC Global.
Diversification Opportunities for Manulife Global and RBC Global
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Manulife and RBC is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Global Equity and RBC Global Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Global Technology and Manulife Global 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 Global Equity are associated (or correlated) with RBC Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Global Technology has no effect on the direction of Manulife Global i.e., Manulife Global and RBC Global go up and down completely randomly.
Pair Corralation between Manulife Global and RBC Global
Assuming the 90 days trading horizon Manulife Global is expected to generate 2.99 times less return on investment than RBC Global. But when comparing it to its historical volatility, Manulife Global Equity is 2.04 times less risky than RBC Global. It trades about 0.08 of its potential returns per unit of risk. RBC Global Technology is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 901.00 in RBC Global Technology on August 26, 2024 and sell it today you would earn a total of 843.00 from holding RBC Global Technology or generate 93.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Manulife Global Equity vs. RBC Global Technology
Performance |
| Timeline |
| Manulife Global Equity |
| RBC Global Technology |
Manulife Global and RBC Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Global and RBC Global
The main advantage of trading using opposite Manulife Global and RBC Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Global position performs unexpectedly, RBC Global 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 RBC Global will offset losses from the drop in RBC Global's long position.| Manulife Global vs. RBC Select Balanced | Manulife Global vs. RBC Portefeuille de | Manulife Global vs. TD Comfort Balanced | Manulife Global vs. RBC Global Equity |
| RBC Global vs. Global Healthcare Income | RBC Global vs. CI Global Alpha | RBC Global vs. CI Global Alpha | RBC Global vs. Manulife Global Equity |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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