Correlation Between Stampede Drilling and Manulife Finl
Can any of the company-specific risk be diversified away by investing in both Stampede Drilling and Manulife Finl 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 Stampede Drilling and Manulife Finl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stampede Drilling and Manulife Finl Srs, you can compare the effects of market volatilities on Stampede Drilling and Manulife Finl 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 Stampede Drilling with a short position of Manulife Finl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stampede Drilling and Manulife Finl.
Diversification Opportunities for Stampede Drilling and Manulife Finl
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stampede and Manulife is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Stampede Drilling and Manulife Finl Srs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Finl Srs and Stampede Drilling 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 Stampede Drilling are associated (or correlated) with Manulife Finl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Finl Srs has no effect on the direction of Stampede Drilling i.e., Stampede Drilling and Manulife Finl go up and down completely randomly.
Pair Corralation between Stampede Drilling and Manulife Finl
Assuming the 90 days horizon Stampede Drilling is expected to under-perform the Manulife Finl. In addition to that, Stampede Drilling is 6.92 times more volatile than Manulife Finl Srs. It trades about -0.02 of its total potential returns per unit of risk. Manulife Finl Srs is currently generating about -0.08 per unit of volatility. If you would invest 2,021 in Manulife Finl Srs on September 2, 2024 and sell it today you would lose (61.00) from holding Manulife Finl Srs or give up 3.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stampede Drilling vs. Manulife Finl Srs
Performance |
| Timeline |
| Stampede Drilling |
| Manulife Finl Srs |
Stampede Drilling and Manulife Finl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stampede Drilling and Manulife Finl
The main advantage of trading using opposite Stampede Drilling and Manulife Finl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stampede Drilling position performs unexpectedly, Manulife Finl 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 Finl will offset losses from the drop in Manulife Finl's long position.| Stampede Drilling vs. STEP Energy Services | Stampede Drilling vs. Southern Energy Corp | Stampede Drilling vs. PHX Energy Services |
| Manulife Finl vs. Orbit Garant Drilling | Manulife Finl vs. Canso Select Opportunities | Manulife Finl vs. Arbor Metals Corp | Manulife Finl vs. Highwood Asset Management |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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