Correlation Between Spruce Ridge and Manulife Financial
Can any of the company-specific risk be diversified away by investing in both Spruce Ridge 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 Spruce Ridge and Manulife Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spruce Ridge Resources and Manulife Financial Corp, you can compare the effects of market volatilities on Spruce Ridge 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 Spruce Ridge with a short position of Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spruce Ridge and Manulife Financial.
Diversification Opportunities for Spruce Ridge and Manulife Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Spruce and Manulife is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Spruce Ridge Resources 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 Spruce Ridge 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 Spruce Ridge Resources 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 Spruce Ridge i.e., Spruce Ridge and Manulife Financial go up and down completely randomly.
Pair Corralation between Spruce Ridge and Manulife Financial
If you would invest 1,672 in Manulife Financial Corp on October 25, 2024 and sell it today you would earn a total of 168.00 from holding Manulife Financial Corp or generate 10.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Spruce Ridge Resources vs. Manulife Financial Corp
Performance |
| Timeline |
| Spruce Ridge Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Manulife Financial Corp |
Spruce Ridge and Manulife Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spruce Ridge and Manulife Financial
The main advantage of trading using opposite Spruce Ridge and Manulife Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spruce Ridge 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.| Spruce Ridge vs. Ramp Metals | Spruce Ridge vs. Birchtech Corp | Spruce Ridge vs. XXIX Metal Corp | Spruce Ridge vs. T2 Metals Corp |
| Manulife Financial vs. Magna Mining | Manulife Financial vs. Mako Mining Corp | Manulife Financial vs. Endeavour Silver Corp | Manulife Financial vs. Blackrock Silver Corp |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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