Correlation Between Manulife Multifactor and CI MidCap
Can any of the company-specific risk be diversified away by investing in both Manulife Multifactor and CI MidCap 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 CI MidCap 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 CI MidCap Dividend, you can compare the effects of market volatilities on Manulife Multifactor and CI MidCap 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 CI MidCap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Multifactor and CI MidCap.
Diversification Opportunities for Manulife Multifactor and CI MidCap
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Manulife and UMI is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Multifactor Mid and CI MidCap Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI MidCap Dividend 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 CI MidCap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI MidCap Dividend has no effect on the direction of Manulife Multifactor i.e., Manulife Multifactor and CI MidCap go up and down completely randomly.
Pair Corralation between Manulife Multifactor and CI MidCap
Assuming the 90 days trading horizon Manulife Multifactor Mid is expected to generate 0.97 times more return on investment than CI MidCap. However, Manulife Multifactor Mid is 1.04 times less risky than CI MidCap. It trades about 0.07 of its potential returns per unit of risk. CI MidCap Dividend is currently generating about 0.07 per unit of risk. If you would invest 3,548 in Manulife Multifactor Mid on August 30, 2024 and sell it today you would earn a total of 1,272 from holding Manulife Multifactor Mid or generate 35.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Manulife Multifactor Mid vs. CI MidCap Dividend
Performance |
| Timeline |
| Manulife Multifactor Mid |
| CI MidCap Dividend |
Manulife Multifactor and CI MidCap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Multifactor and CI MidCap
The main advantage of trading using opposite Manulife Multifactor and CI MidCap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Multifactor position performs unexpectedly, CI MidCap 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 CI MidCap will offset losses from the drop in CI MidCap's long position.| Manulife Multifactor vs. iShares SPTSX Small | Manulife Multifactor vs. iShares MSCI Europe | Manulife Multifactor vs. BMO Aggregate Bond | Manulife Multifactor vs. iShares Canadian HYBrid |
| CI MidCap vs. iShares SPTSX Small | CI MidCap vs. iShares MSCI Europe | CI MidCap vs. BMO Aggregate Bond | CI MidCap vs. iShares Canadian HYBrid |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |