Correlation Between Manulife Smart and Mackenzie Canadian
Can any of the company-specific risk be diversified away by investing in both Manulife Smart and Mackenzie Canadian 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 Manulife Smart and Mackenzie Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manulife Smart Short Term and Mackenzie Canadian Aggregate, you can compare the effects of market volatilities on Manulife Smart and Mackenzie Canadian 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 Manulife Smart with a short position of Mackenzie Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Smart and Mackenzie Canadian.
Diversification Opportunities for Manulife Smart and Mackenzie Canadian
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Manulife and Mackenzie is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Smart Short Term and Mackenzie Canadian Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Canadian and Manulife Smart 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 Manulife Smart Short Term are associated (or correlated) with Mackenzie Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackenzie Canadian has no effect on the direction of Manulife Smart i.e., Manulife Smart and Mackenzie Canadian go up and down completely randomly.
Pair Corralation between Manulife Smart and Mackenzie Canadian
Assuming the 90 days trading horizon Manulife Smart Short Term is expected to generate 0.52 times more return on investment than Mackenzie Canadian. However, Manulife Smart Short Term is 1.92 times less risky than Mackenzie Canadian. It trades about 0.12 of its potential returns per unit of risk. Mackenzie Canadian Aggregate is currently generating about 0.04 per unit of risk. If you would invest 855.00 in Manulife Smart Short Term on August 31, 2024 and sell it today you would earn a total of 111.00 from holding Manulife Smart Short Term or generate 12.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Manulife Smart Short Term vs. Mackenzie Canadian Aggregate
Performance |
| Timeline |
| Manulife Smart Short |
| Mackenzie Canadian |
Manulife Smart and Mackenzie Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Smart and Mackenzie Canadian
The main advantage of trading using opposite Manulife Smart and Mackenzie Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Smart position performs unexpectedly, Mackenzie Canadian 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 Mackenzie Canadian will offset losses from the drop in Mackenzie Canadian's long position.| Manulife Smart vs. Vanguard Total Market | Manulife Smart vs. iShares High Quality | Manulife Smart vs. iShares 1 10Yr Laddered | Manulife Smart vs. iShares Canadian HYBrid |
| Mackenzie Canadian vs. Mackenzie Core Plus | Mackenzie Canadian vs. Mackenzie Canadian Short Term | Mackenzie Canadian vs. Mackenzie Core Plus | Mackenzie Canadian vs. Mackenzie Canadian Short |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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