Correlation Between Manulife Multifactor and Mackenzie Canadian
Can any of the company-specific risk be diversified away by investing in both Manulife Multifactor 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 Multifactor 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 Multifactor Canadian and Mackenzie Canadian All, you can compare the effects of market volatilities on Manulife Multifactor 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 Multifactor with a short position of Mackenzie Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Multifactor and Mackenzie Canadian.
Diversification Opportunities for Manulife Multifactor and Mackenzie Canadian
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Manulife and Mackenzie is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Multifactor Canadian and Mackenzie Canadian All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackenzie Canadian All and Manulife Multifactor 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 Multifactor Canadian 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 All has no effect on the direction of Manulife Multifactor i.e., Manulife Multifactor and Mackenzie Canadian go up and down completely randomly.
Pair Corralation between Manulife Multifactor and Mackenzie Canadian
Assuming the 90 days trading horizon Manulife Multifactor Canadian is expected to generate 1.92 times more return on investment than Mackenzie Canadian. However, Manulife Multifactor is 1.92 times more volatile than Mackenzie Canadian All. It trades about 0.11 of its potential returns per unit of risk. Mackenzie Canadian All is currently generating about 0.05 per unit of risk. If you would invest 4,041 in Manulife Multifactor Canadian on September 26, 2024 and sell it today you would earn a total of 154.00 from holding Manulife Multifactor Canadian or generate 3.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Manulife Multifactor Canadian vs. Mackenzie Canadian All
Performance |
Timeline |
Manulife Multifactor |
Mackenzie Canadian All |
Manulife Multifactor and Mackenzie Canadian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Manulife Multifactor and Mackenzie Canadian
The main advantage of trading using opposite Manulife Multifactor and Mackenzie Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Multifactor 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 Multifactor vs. iShares Core MSCI | Manulife Multifactor vs. Vanguard Total Market | Manulife Multifactor vs. iShares Core SP | Manulife Multifactor vs. BMO Aggregate Bond |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |