Correlation Between Solid Impact and Manulife Financial
Can any of the company-specific risk be diversified away by investing in both Solid Impact 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 Solid Impact and Manulife Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solid Impact Investments and Manulife Financial Corp, you can compare the effects of market volatilities on Solid Impact 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 Solid Impact with a short position of Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solid Impact and Manulife Financial.
Diversification Opportunities for Solid Impact and Manulife Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Solid and Manulife is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Solid Impact Investments 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 Solid Impact 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 Solid Impact Investments 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 Solid Impact i.e., Solid Impact and Manulife Financial go up and down completely randomly.
Pair Corralation between Solid Impact and Manulife Financial
Assuming the 90 days trading horizon Solid Impact Investments is expected to under-perform the Manulife Financial. In addition to that, Solid Impact is 2.92 times more volatile than Manulife Financial Corp. It trades about -0.08 of its total potential returns per unit of risk. Manulife Financial Corp is currently generating about 0.1 per unit of volatility. If you would invest 1,675 in Manulife Financial Corp on September 4, 2024 and sell it today you would earn a total of 407.00 from holding Manulife Financial Corp or generate 24.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Solid Impact Investments vs. Manulife Financial Corp
Performance |
| Timeline |
| Solid Impact Investments |
| Manulife Financial Corp |
Solid Impact and Manulife Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solid Impact and Manulife Financial
The main advantage of trading using opposite Solid Impact and Manulife Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solid Impact 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.| Solid Impact vs. Falcon Energy Materials | Solid Impact vs. Guru Organic Energy | Solid Impact vs. Canaf Investments | Solid Impact vs. A W FOOD |
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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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