Correlation Between National Bank and Manulife Fin
Can any of the company-specific risk be diversified away by investing in both National Bank and Manulife Fin 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 National Bank and Manulife Fin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Bank of and Manulife Fin Non, you can compare the effects of market volatilities on National Bank and Manulife Fin 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 National Bank with a short position of Manulife Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Manulife Fin.
Diversification Opportunities for National Bank and Manulife Fin
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Manulife is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Manulife Fin Non in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Fin Non and National Bank 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 National Bank of are associated (or correlated) with Manulife Fin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Fin Non has no effect on the direction of National Bank i.e., National Bank and Manulife Fin go up and down completely randomly.
Pair Corralation between National Bank and Manulife Fin
Assuming the 90 days trading horizon National Bank of is expected to generate 0.68 times more return on investment than Manulife Fin. However, National Bank of is 1.48 times less risky than Manulife Fin. It trades about 0.19 of its potential returns per unit of risk. Manulife Fin Non is currently generating about 0.0 per unit of risk. If you would invest 2,590 in National Bank of on September 3, 2024 and sell it today you would earn a total of 35.00 from holding National Bank of or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Bank of vs. Manulife Fin Non
Performance |
| Timeline |
| National Bank |
| Manulife Fin Non |
National Bank and Manulife Fin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Manulife Fin
The main advantage of trading using opposite National Bank and Manulife Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Manulife Fin 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 Fin will offset losses from the drop in Manulife Fin's long position.| National Bank vs. Apple Inc CDR | National Bank vs. Microsoft Corp CDR | National Bank vs. Amazon CDR | National Bank vs. Alphabet Inc CDR |
| Manulife Fin vs. UnitedHealth Group CDR | Manulife Fin vs. Northstar Clean Technologies | Manulife Fin vs. Perseus Mining | Manulife Fin vs. NorthWest Healthcare Properties |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |