Correlation Between Visa and Manulife Dividend
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By analyzing existing cross correlation between Visa Class A and Manulife Dividend Income, you can compare the effects of market volatilities on Visa and Manulife Dividend 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 Visa with a short position of Manulife Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Manulife Dividend.
Diversification Opportunities for Visa and Manulife Dividend
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Visa and Manulife is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Manulife Dividend Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Dividend Income and Visa 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 Visa Class A are associated (or correlated) with Manulife Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Dividend Income has no effect on the direction of Visa i.e., Visa and Manulife Dividend go up and down completely randomly.
Pair Corralation between Visa and Manulife Dividend
Taking into account the 90-day investment horizon Visa Class A is expected to generate 1.36 times more return on investment than Manulife Dividend. However, Visa is 1.36 times more volatile than Manulife Dividend Income. It trades about 0.09 of its potential returns per unit of risk. Manulife Dividend Income is currently generating about 0.11 per unit of risk. If you would invest 20,311 in Visa Class A on September 14, 2024 and sell it today you would earn a total of 11,272 from holding Visa Class A or generate 55.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 54.34% |
| Values | Daily Returns |
Visa Class A vs. Manulife Dividend Income
Performance |
| Timeline |
| Visa Class A |
| Manulife Dividend Income |
Visa and Manulife Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Manulife Dividend
The main advantage of trading using opposite Visa and Manulife Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Manulife Dividend 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 Dividend will offset losses from the drop in Manulife Dividend's long position.| Visa vs. American Express | Visa vs. PayPal Holdings | Visa vs. Capital One Financial | Visa vs. Upstart Holdings |
| Manulife Dividend vs. Manulife All Cap | Manulife Dividend vs. Manulife Global Equity | Manulife Dividend vs. Manulife Dividend Income | Manulife Dividend vs. Fidelity Tactical High |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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