Correlation Between Slate Grocery and Manulife Financial
Can any of the company-specific risk be diversified away by investing in both Slate Grocery 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 Slate Grocery and Manulife Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Slate Grocery REIT and Manulife Financial Corp, you can compare the effects of market volatilities on Slate Grocery 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 Slate Grocery with a short position of Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and Manulife Financial.
Diversification Opportunities for Slate Grocery and Manulife Financial
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Slate and Manulife is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT 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 Slate Grocery 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 Slate Grocery REIT 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 Slate Grocery i.e., Slate Grocery and Manulife Financial go up and down completely randomly.
Pair Corralation between Slate Grocery and Manulife Financial
Assuming the 90 days trading horizon Slate Grocery is expected to generate 2.97 times less return on investment than Manulife Financial. In addition to that, Slate Grocery is 2.07 times more volatile than Manulife Financial Corp. It trades about 0.02 of its total potential returns per unit of risk. Manulife Financial Corp is currently generating about 0.11 per unit of volatility. If you would invest 1,547 in Manulife Financial Corp on September 4, 2024 and sell it today you would earn a total of 853.00 from holding Manulife Financial Corp or generate 55.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slate Grocery REIT vs. Manulife Financial Corp
Performance |
| Timeline |
| Slate Grocery REIT |
| Manulife Financial Corp |
Slate Grocery and Manulife Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Grocery and Manulife Financial
The main advantage of trading using opposite Slate Grocery and Manulife Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery 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.| Slate Grocery vs. Champion Iron | Slate Grocery vs. Firan Technology Group | Slate Grocery vs. Gfl Environmental Holdings | Slate Grocery vs. Birchtech Corp |
| Manulife Financial vs. Manulife Financial Corp | Manulife Financial vs. Manulife Financial Corp | Manulife Financial vs. Manulife Financial Corp | Manulife Financial vs. Manulife Finl Srs |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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