Correlation Between First Asset and Manulife Smart
Can any of the company-specific risk be diversified away by investing in both First Asset 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 First Asset and Manulife Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Asset Energy and Manulife Smart International, you can compare the effects of market volatilities on First Asset 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 First Asset with a short position of Manulife Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Asset and Manulife Smart.
Diversification Opportunities for First Asset and Manulife Smart
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between First and Manulife is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding First Asset Energy and Manulife Smart International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Smart Inter and First Asset 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 First Asset Energy 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 Inter has no effect on the direction of First Asset i.e., First Asset and Manulife Smart go up and down completely randomly.
Pair Corralation between First Asset and Manulife Smart
Assuming the 90 days trading horizon First Asset is expected to generate 1.24 times less return on investment than Manulife Smart. In addition to that, First Asset is 2.2 times more volatile than Manulife Smart International. It trades about 0.02 of its total potential returns per unit of risk. Manulife Smart International is currently generating about 0.05 per unit of volatility. If you would invest 1,050 in Manulife Smart International on September 3, 2024 and sell it today you would earn a total of 155.00 from holding Manulife Smart International or generate 14.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
First Asset Energy vs. Manulife Smart International
Performance |
| Timeline |
| First Asset Energy |
| Manulife Smart Inter |
First Asset and Manulife Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Asset and Manulife Smart
The main advantage of trading using opposite First Asset and Manulife Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Asset 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.| First Asset vs. CI Gold Giants | First Asset vs. First Asset Tech | First Asset vs. CI Canada Lifeco | First Asset vs. Harvest Healthcare Leaders |
| Manulife Smart vs. First Asset Energy | Manulife Smart vs. First Asset Tech | Manulife Smart vs. Harvest Equal Weight | Manulife Smart vs. CI Canada Lifeco |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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