Correlation Between Plaza Retail and Manulife Fin
Can any of the company-specific risk be diversified away by investing in both Plaza Retail 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 Plaza Retail and Manulife Fin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plaza Retail REIT and Manulife Fin Non, you can compare the effects of market volatilities on Plaza Retail 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 Plaza Retail with a short position of Manulife Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plaza Retail and Manulife Fin.
Diversification Opportunities for Plaza Retail and Manulife Fin
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Plaza and Manulife is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Plaza Retail REIT 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 Plaza Retail 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 Plaza Retail REIT 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 Plaza Retail i.e., Plaza Retail and Manulife Fin go up and down completely randomly.
Pair Corralation between Plaza Retail and Manulife Fin
Assuming the 90 days trading horizon Plaza Retail REIT is expected to generate 1.01 times more return on investment than Manulife Fin. However, Plaza Retail is 1.01 times more volatile than Manulife Fin Non. It trades about 0.0 of its potential returns per unit of risk. Manulife Fin Non is currently generating about -0.04 per unit of risk. If you would invest 374.00 in Plaza Retail REIT on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Plaza Retail REIT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plaza Retail REIT vs. Manulife Fin Non
Performance |
| Timeline |
| Plaza Retail REIT |
| Manulife Fin Non |
Plaza Retail and Manulife Fin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plaza Retail and Manulife Fin
The main advantage of trading using opposite Plaza Retail and Manulife Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plaza Retail 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.| Plaza Retail vs. Slate Office REIT | Plaza Retail vs. Automotive Properties Real | Plaza Retail vs. BTB Real Estate | Plaza Retail vs. CT Real Estate |
| Manulife Fin vs. Leons Furniture Limited | Manulife Fin vs. Advent Wireless | Manulife Fin vs. Perseus Mining | Manulife Fin vs. Plaza Retail REIT |
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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