Correlation Between Microsoft and Manulife Dividend
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By analyzing existing cross correlation between Microsoft and Manulife Dividend Income, you can compare the effects of market volatilities on Microsoft and Manulife Dividend 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 Microsoft with a short position of Manulife Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Manulife Dividend.
Diversification Opportunities for Microsoft and Manulife Dividend
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Microsoft and Manulife is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and Manulife Dividend Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Dividend Income and Microsoft 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 Microsoft are associated (or correlated) with Manulife Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Dividend Income has no effect on the direction of Microsoft i.e., Microsoft and Manulife Dividend go up and down completely randomly.
Pair Corralation between Microsoft and Manulife Dividend
Given the investment horizon of 90 days Microsoft is expected to generate 1.91 times more return on investment than Manulife Dividend. However, Microsoft is 1.91 times more volatile than Manulife Dividend Income. It trades about 0.1 of its potential returns per unit of risk. Manulife Dividend Income is currently generating about 0.11 per unit of risk. If you would invest 23,313 in Microsoft on September 14, 2024 and sell it today you would earn a total of 21,424 from holding Microsoft or generate 91.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 54.34% |
| Values | Daily Returns |
Microsoft vs. Manulife Dividend Income
Performance |
| Timeline |
| Microsoft |
| Manulife Dividend Income |
Microsoft and Manulife Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Manulife Dividend
The main advantage of trading using opposite Microsoft and Manulife Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft position performs unexpectedly, Manulife Dividend 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 Dividend will offset losses from the drop in Manulife Dividend's long position.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Block Inc | Microsoft vs. Adobe Systems Incorporated |
| Manulife Dividend vs. Manulife All Cap | Manulife Dividend vs. Manulife Global Equity | Manulife Dividend vs. Manulife Dividend Income | Manulife Dividend vs. Fidelity Tactical High |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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