Correlation Between Manulife Multifactor and Manulife Smart
Can any of the company-specific risk be diversified away by investing in both Manulife Multifactor and Manulife Smart 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 Multifactor and Manulife Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manulife Multifactor Mid and Manulife Smart Core, you can compare the effects of market volatilities on Manulife Multifactor and Manulife Smart 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 Multifactor with a short position of Manulife Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Multifactor and Manulife Smart.
Diversification Opportunities for Manulife Multifactor and Manulife Smart
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Manulife and Manulife is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Multifactor Mid and Manulife Smart Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Smart Core and Manulife Multifactor 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 Multifactor Mid are associated (or correlated) with Manulife Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Smart Core has no effect on the direction of Manulife Multifactor i.e., Manulife Multifactor and Manulife Smart go up and down completely randomly.
Pair Corralation between Manulife Multifactor and Manulife Smart
If you would invest 4,490 in Manulife Multifactor Mid on August 31, 2024 and sell it today you would earn a total of 311.00 from holding Manulife Multifactor Mid or generate 6.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Manulife Multifactor Mid vs. Manulife Smart Core
Performance |
| Timeline |
| Manulife Multifactor Mid |
| Manulife Smart Core |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Manulife Multifactor and Manulife Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Multifactor and Manulife Smart
The main advantage of trading using opposite Manulife Multifactor and Manulife Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Multifactor position performs unexpectedly, Manulife Smart 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 Smart will offset losses from the drop in Manulife Smart's long position.| Manulife Multifactor vs. iShares SPTSX Small | Manulife Multifactor vs. iShares Canadian Value | Manulife Multifactor vs. iShares Canadian Growth | Manulife Multifactor vs. iShares SPTSX Completion |
| Manulife Smart vs. Manulife Multifactor Mid | Manulife Smart vs. Manulife Smart International | Manulife Smart vs. Manulife Smart Short Term | Manulife Smart vs. Manulife Smart Corporate |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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