Correlation Between Manulife Smart and IShares Core
Can any of the company-specific risk be diversified away by investing in both Manulife Smart and IShares Core 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 IShares Core 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 iShares Core MSCI, you can compare the effects of market volatilities on Manulife Smart and IShares Core 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 IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Smart and IShares Core.
Diversification Opportunities for Manulife Smart and IShares Core
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Manulife and IShares is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Smart Short Term and iShares Core MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core MSCI 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 IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core MSCI has no effect on the direction of Manulife Smart i.e., Manulife Smart and IShares Core go up and down completely randomly.
Pair Corralation between Manulife Smart and IShares Core
Assuming the 90 days trading horizon Manulife Smart is expected to generate 2.74 times less return on investment than IShares Core. But when comparing it to its historical volatility, Manulife Smart Short Term is 3.09 times less risky than IShares Core. It trades about 0.12 of its potential returns per unit of risk. iShares Core MSCI is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,193 in iShares Core MSCI on December 27, 2024 and sell it today you would earn a total of 1,276 from holding iShares Core MSCI or generate 39.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Smart Short Term vs. iShares Core MSCI
Performance |
| Timeline |
| Manulife Smart Short |
| iShares Core MSCI |
Manulife Smart and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Smart and IShares Core
The main advantage of trading using opposite Manulife Smart and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Smart position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core's long position.| Manulife Smart vs. Manulife Multifactor Mid | Manulife Smart vs. Manulife Smart International | Manulife Smart vs. Manulife Smart Corporate | Manulife Smart vs. Manulife Multifactor Developed |
| IShares Core vs. Vanguard FTSE Canada | IShares Core vs. BMO Aggregate Bond | IShares Core vs. iShares Core SP | IShares Core vs. Vanguard FTSE Global |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |