Correlation Between Manulife Smart and RBC Short
Can any of the company-specific risk be diversified away by investing in both Manulife Smart and RBC Short 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 RBC Short 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 RBC Short Term, you can compare the effects of market volatilities on Manulife Smart and RBC Short 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 RBC Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Smart and RBC Short.
Diversification Opportunities for Manulife Smart and RBC Short
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manulife and RBC is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Smart Short Term and RBC Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Short Term 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 RBC Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Short Term has no effect on the direction of Manulife Smart i.e., Manulife Smart and RBC Short go up and down completely randomly.
Pair Corralation between Manulife Smart and RBC Short
Assuming the 90 days trading horizon Manulife Smart Short Term is expected to generate 0.19 times more return on investment than RBC Short. However, Manulife Smart Short Term is 5.2 times less risky than RBC Short. It trades about 0.18 of its potential returns per unit of risk. RBC Short Term is currently generating about -0.04 per unit of risk. If you would invest 973.00 in Manulife Smart Short Term on November 17, 2025 and sell it today you would earn a total of 12.00 from holding Manulife Smart Short Term or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Smart Short Term vs. RBC Short Term
Performance |
| Timeline |
| Manulife Smart Short |
| RBC Short Term |
Manulife Smart and RBC Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Smart and RBC Short
The main advantage of trading using opposite Manulife Smart and RBC Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Smart position performs unexpectedly, RBC Short 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 RBC Short will offset losses from the drop in RBC Short's long position.| Manulife Smart vs. Manulife Fundamental Equity | Manulife Smart vs. Manulife Multifactor Mid | Manulife Smart vs. Manulife Smart International | Manulife Smart vs. Manulife Smart Corporate |
| RBC Short vs. BMO All Equity ETF | RBC Short vs. TD Active Global | RBC Short vs. First Asset Morningstar | RBC Short vs. Dynamic Active Canadian |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |