Correlation Between Ocumetics Technology and Manulife Financial
Can any of the company-specific risk be diversified away by investing in both Ocumetics Technology and Manulife Financial 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 Ocumetics Technology and Manulife Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocumetics Technology Corp and Manulife Financial Corp, you can compare the effects of market volatilities on Ocumetics Technology and Manulife Financial 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 Ocumetics Technology with a short position of Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocumetics Technology and Manulife Financial.
Diversification Opportunities for Ocumetics Technology and Manulife Financial
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ocumetics and Manulife is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ocumetics Technology Corp and Manulife Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Financial Corp and Ocumetics Technology 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 Ocumetics Technology Corp are associated (or correlated) with Manulife Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Financial Corp has no effect on the direction of Ocumetics Technology i.e., Ocumetics Technology and Manulife Financial go up and down completely randomly.
Pair Corralation between Ocumetics Technology and Manulife Financial
Assuming the 90 days horizon Ocumetics Technology Corp is expected to under-perform the Manulife Financial. In addition to that, Ocumetics Technology is 3.91 times more volatile than Manulife Financial Corp. It trades about -0.07 of its total potential returns per unit of risk. Manulife Financial Corp is currently generating about 0.14 per unit of volatility. If you would invest 1,665 in Manulife Financial Corp on October 11, 2024 and sell it today you would earn a total of 93.00 from holding Manulife Financial Corp or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ocumetics Technology Corp vs. Manulife Financial Corp
Performance |
| Timeline |
| Ocumetics Technology Corp |
| Manulife Financial Corp |
Ocumetics Technology and Manulife Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocumetics Technology and Manulife Financial
The main advantage of trading using opposite Ocumetics Technology and Manulife Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocumetics Technology position performs unexpectedly, Manulife Financial 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 Financial will offset losses from the drop in Manulife Financial's long position.| Ocumetics Technology vs. Sirona Biochem Corp | Ocumetics Technology vs. Rakovina Therapeutics | Ocumetics Technology vs. Water Ways Technologies | Ocumetics Technology vs. Perimeter Medical Imaging |
| Manulife Financial vs. Ramp Metals | Manulife Financial vs. AKITA Drilling | Manulife Financial vs. Dream Office Real | Manulife Financial vs. Mako Mining Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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