Correlation Between QC Copper and Manulife Fin
Can any of the company-specific risk be diversified away by investing in both QC Copper 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 QC Copper and Manulife Fin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QC Copper and and Manulife Fin Non, you can compare the effects of market volatilities on QC Copper 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 QC Copper with a short position of Manulife Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of QC Copper and Manulife Fin.
Diversification Opportunities for QC Copper and Manulife Fin
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between QCCU and Manulife is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding QC Copper and 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 QC Copper 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 QC Copper and 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 QC Copper i.e., QC Copper and Manulife Fin go up and down completely randomly.
Pair Corralation between QC Copper and Manulife Fin
Assuming the 90 days trading horizon QC Copper and is expected to under-perform the Manulife Fin. In addition to that, QC Copper is 4.81 times more volatile than Manulife Fin Non. It trades about -0.02 of its total potential returns per unit of risk. Manulife Fin Non is currently generating about 0.01 per unit of volatility. If you would invest 2,390 in Manulife Fin Non on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Manulife Fin Non or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QC Copper and vs. Manulife Fin Non
Performance |
| Timeline |
| QC Copper |
| Manulife Fin Non |
QC Copper and Manulife Fin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QC Copper and Manulife Fin
The main advantage of trading using opposite QC Copper and Manulife Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QC Copper 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.| QC Copper vs. First Majestic Silver | QC Copper vs. Ivanhoe Energy | QC Copper vs. Orezone Gold Corp | QC Copper vs. Faraday Copper Corp |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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