Correlation Between Nasdaq and Manulife Global
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nasdaq Inc and Manulife Global Equity, you can compare the effects of market volatilities on Nasdaq and Manulife Global 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 Nasdaq with a short position of Manulife Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Manulife Global.
Diversification Opportunities for Nasdaq and Manulife Global
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nasdaq and Manulife is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and Manulife Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Global Equity and Nasdaq 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 Nasdaq Inc are associated (or correlated) with Manulife Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Global Equity has no effect on the direction of Nasdaq i.e., Nasdaq and Manulife Global go up and down completely randomly.
Pair Corralation between Nasdaq and Manulife Global
Given the investment horizon of 90 days Nasdaq Inc is expected to generate 2.36 times more return on investment than Manulife Global. However, Nasdaq is 2.36 times more volatile than Manulife Global Equity. It trades about 0.09 of its potential returns per unit of risk. Manulife Global Equity is currently generating about 0.01 per unit of risk. If you would invest 7,738 in Nasdaq Inc on October 20, 2024 and sell it today you would earn a total of 145.00 from holding Nasdaq Inc or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Nasdaq Inc vs. Manulife Global Equity
Performance |
| Timeline |
| Nasdaq Inc |
| Manulife Global Equity |
Nasdaq and Manulife Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and Manulife Global
The main advantage of trading using opposite Nasdaq and Manulife Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq position performs unexpectedly, Manulife Global 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 Global will offset losses from the drop in Manulife Global's long position.The idea behind Nasdaq Inc and Manulife Global Equity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Manulife Global vs. Edgepoint Global Portfolio | Manulife Global vs. RBC Global Equity | Manulife Global vs. Invesco Global Companies | Manulife Global vs. CI Black Creek |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |