Correlation Between Stampede Drilling and Manulife Fin
Can any of the company-specific risk be diversified away by investing in both Stampede Drilling 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 Stampede Drilling and Manulife Fin 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 Fin Non, you can compare the effects of market volatilities on Stampede Drilling 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 Stampede Drilling with a short position of Manulife Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stampede Drilling and Manulife Fin.
Diversification Opportunities for Stampede Drilling and Manulife Fin
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stampede and Manulife is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Stampede Drilling 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 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 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 Stampede Drilling i.e., Stampede Drilling and Manulife Fin go up and down completely randomly.
Pair Corralation between Stampede Drilling and Manulife Fin
Assuming the 90 days horizon Stampede Drilling is expected to generate 15.73 times more return on investment than Manulife Fin. However, Stampede Drilling is 15.73 times more volatile than Manulife Fin Non. It trades about 0.09 of its potential returns per unit of risk. Manulife Fin Non is currently generating about 0.15 per unit of risk. If you would invest 16.00 in Stampede Drilling on December 3, 2024 and sell it today you would earn a total of 1.00 from holding Stampede Drilling or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stampede Drilling vs. Manulife Fin Non
Performance |
| Timeline |
| Stampede Drilling |
| Manulife Fin Non |
Stampede Drilling and Manulife Fin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stampede Drilling and Manulife Fin
The main advantage of trading using opposite Stampede Drilling and Manulife Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stampede Drilling 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.| Stampede Drilling vs. STEP Energy Services | Stampede Drilling vs. Southern Energy Corp | Stampede Drilling vs. PHX Energy Services |
| Manulife Fin vs. NeXGold Mining Corp | Manulife Fin vs. Adex Mining | Manulife Fin vs. Pembina Pipeline Corp | Manulife Fin vs. 2028 Investment Grade |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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