Correlation Between MUTUIONLINE and Manulife Financial
Can any of the company-specific risk be diversified away by investing in both MUTUIONLINE and Manulife Financial 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 MUTUIONLINE and Manulife Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MUTUIONLINE and Manulife Financial, you can compare the effects of market volatilities on MUTUIONLINE and Manulife Financial 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 MUTUIONLINE with a short position of Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of MUTUIONLINE and Manulife Financial.
Diversification Opportunities for MUTUIONLINE and Manulife Financial
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MUTUIONLINE and Manulife is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding MUTUIONLINE and Manulife Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Financial and MUTUIONLINE 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 MUTUIONLINE are associated (or correlated) with Manulife Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Financial has no effect on the direction of MUTUIONLINE i.e., MUTUIONLINE and Manulife Financial go up and down completely randomly.
Pair Corralation between MUTUIONLINE and Manulife Financial
Assuming the 90 days trading horizon MUTUIONLINE is expected to generate 2.11 times less return on investment than Manulife Financial. In addition to that, MUTUIONLINE is 1.25 times more volatile than Manulife Financial. It trades about 0.05 of its total potential returns per unit of risk. Manulife Financial is currently generating about 0.13 per unit of volatility. If you would invest 1,784 in Manulife Financial on September 14, 2024 and sell it today you would earn a total of 1,185 from holding Manulife Financial or generate 66.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MUTUIONLINE vs. Manulife Financial
Performance |
| Timeline |
| MUTUIONLINE |
| Manulife Financial |
MUTUIONLINE and Manulife Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MUTUIONLINE and Manulife Financial
The main advantage of trading using opposite MUTUIONLINE and Manulife Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MUTUIONLINE position performs unexpectedly, Manulife Financial 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 Manulife Financial will offset losses from the drop in Manulife Financial's long position.| MUTUIONLINE vs. Lendlease Group | MUTUIONLINE vs. Global Ship Lease | MUTUIONLINE vs. Broadcom | MUTUIONLINE vs. Transport International Holdings |
| Manulife Financial vs. Take Two Interactive Software | Manulife Financial vs. Constellation Software | Manulife Financial vs. VITEC SOFTWARE GROUP | Manulife Financial vs. UPDATE SOFTWARE |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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