Correlation Between NVIDIA CDR and Manulife Fin
Can any of the company-specific risk be diversified away by investing in both NVIDIA CDR 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 NVIDIA CDR and Manulife Fin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NVIDIA CDR and Manulife Fin Non, you can compare the effects of market volatilities on NVIDIA CDR 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 NVIDIA CDR with a short position of Manulife Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of NVIDIA CDR and Manulife Fin.
Diversification Opportunities for NVIDIA CDR and Manulife Fin
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NVIDIA and Manulife is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding NVIDIA CDR 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 NVIDIA CDR 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 NVIDIA CDR 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 NVIDIA CDR i.e., NVIDIA CDR and Manulife Fin go up and down completely randomly.
Pair Corralation between NVIDIA CDR and Manulife Fin
Assuming the 90 days trading horizon NVIDIA CDR is expected to generate 4.67 times more return on investment than Manulife Fin. However, NVIDIA CDR is 4.67 times more volatile than Manulife Fin Non. It trades about 0.04 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 3,189 in NVIDIA CDR on September 3, 2024 and sell it today you would earn a total of 51.00 from holding NVIDIA CDR or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NVIDIA CDR vs. Manulife Fin Non
Performance |
| Timeline |
| NVIDIA CDR |
| Manulife Fin Non |
NVIDIA CDR and Manulife Fin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NVIDIA CDR and Manulife Fin
The main advantage of trading using opposite NVIDIA CDR and Manulife Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NVIDIA CDR 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.| NVIDIA CDR vs. Atrium Mortgage Investment | NVIDIA CDR vs. Perseus Mining | NVIDIA CDR vs. Canaf Investments | NVIDIA CDR vs. Solid Impact Investments |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |