Correlation Between Manulife Global and Global Healthcare
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By analyzing existing cross correlation between Manulife Global Equity and Global Healthcare Income, you can compare the effects of market volatilities on Manulife Global and Global Healthcare 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 Global Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Global and Global Healthcare.
Diversification Opportunities for Manulife Global and Global Healthcare
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manulife and Global is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Global Equity and Global Healthcare Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Healthcare Income 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 Global Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Healthcare Income has no effect on the direction of Manulife Global i.e., Manulife Global and Global Healthcare go up and down completely randomly.
Pair Corralation between Manulife Global and Global Healthcare
Assuming the 90 days trading horizon Manulife Global Equity is expected to generate 0.75 times more return on investment than Global Healthcare. However, Manulife Global Equity is 1.33 times less risky than Global Healthcare. It trades about 0.08 of its potential returns per unit of risk. Global Healthcare Income is currently generating about -0.06 per unit of risk. If you would invest 5,245 in Manulife Global Equity on August 30, 2024 and sell it today you would earn a total of 57.00 from holding Manulife Global Equity or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Global Equity vs. Global Healthcare Income
Performance |
| Timeline |
| Manulife Global Equity |
| Global Healthcare Income |
Manulife Global and Global Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Global and Global Healthcare
The main advantage of trading using opposite Manulife Global and Global Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Global position performs unexpectedly, Global Healthcare 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 Global Healthcare will offset losses from the drop in Global Healthcare's long position.| Manulife Global vs. Tangerine Equity Growth | Manulife Global vs. Fidelity Global Equity | Manulife Global vs. Dynamic Global Fixed | Manulife Global vs. Mawer Global Equity |
| Global Healthcare vs. Blue Ribbon Income | Global Healthcare vs. MINT Income Fund | Global Healthcare vs. Energy Income | Global Healthcare vs. Canadian High Income |
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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