Correlation Between NBI Sustainable and Manulife Smart
Can any of the company-specific risk be diversified away by investing in both NBI Sustainable 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 NBI Sustainable and Manulife Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NBI Sustainable Canadian and Manulife Smart Corporate, you can compare the effects of market volatilities on NBI Sustainable 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 NBI Sustainable with a short position of Manulife Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of NBI Sustainable and Manulife Smart.
Diversification Opportunities for NBI Sustainable and Manulife Smart
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NBI and Manulife is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding NBI Sustainable Canadian and Manulife Smart Corporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Smart Corporate and NBI Sustainable 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 NBI Sustainable Canadian 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 Corporate has no effect on the direction of NBI Sustainable i.e., NBI Sustainable and Manulife Smart go up and down completely randomly.
Pair Corralation between NBI Sustainable and Manulife Smart
Assuming the 90 days trading horizon NBI Sustainable is expected to generate 1.96 times less return on investment than Manulife Smart. In addition to that, NBI Sustainable is 1.07 times more volatile than Manulife Smart Corporate. It trades about 0.06 of its total potential returns per unit of risk. Manulife Smart Corporate is currently generating about 0.12 per unit of volatility. If you would invest 900.00 in Manulife Smart Corporate on August 31, 2024 and sell it today you would earn a total of 20.00 from holding Manulife Smart Corporate or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
NBI Sustainable Canadian vs. Manulife Smart Corporate
Performance |
| Timeline |
| NBI Sustainable Canadian |
| Manulife Smart Corporate |
NBI Sustainable and Manulife Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NBI Sustainable and Manulife Smart
The main advantage of trading using opposite NBI Sustainable and Manulife Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NBI Sustainable 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.| NBI Sustainable vs. NBI High Yield | NBI Sustainable vs. NBI Unconstrained Fixed | NBI Sustainable vs. NBI Global Real | NBI Sustainable vs. NBI Active Canadian |
| Manulife Smart vs. Manulife Multifactor Mid | Manulife Smart vs. Manulife Smart International | Manulife Smart vs. Manulife Smart Short Term | Manulife Smart vs. Manulife Multifactor Developed |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |