Correlation Between Robinsons Retail and Manulife Financial
Can any of the company-specific risk be diversified away by investing in both Robinsons Retail and Manulife Financial 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 Robinsons Retail and Manulife Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Robinsons Retail Holdings and Manulife Financial Corp, you can compare the effects of market volatilities on Robinsons Retail and Manulife Financial 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 Robinsons Retail with a short position of Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robinsons Retail and Manulife Financial.
Diversification Opportunities for Robinsons Retail and Manulife Financial
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Robinsons and Manulife is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Robinsons Retail Holdings and Manulife Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Financial Corp and Robinsons Retail 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 Robinsons Retail Holdings are associated (or correlated) with Manulife Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Financial Corp has no effect on the direction of Robinsons Retail i.e., Robinsons Retail and Manulife Financial go up and down completely randomly.
Pair Corralation between Robinsons Retail and Manulife Financial
Assuming the 90 days trading horizon Robinsons Retail Holdings is expected to under-perform the Manulife Financial. But the stock apears to be less risky and, when comparing its historical volatility, Robinsons Retail Holdings is 3.81 times less risky than Manulife Financial. The stock trades about -0.13 of its potential returns per unit of risk. The Manulife Financial Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 148,498 in Manulife Financial Corp on September 15, 2024 and sell it today you would earn a total of 51,502 from holding Manulife Financial Corp or generate 34.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 71.88% |
Values | Daily Returns |
Robinsons Retail Holdings vs. Manulife Financial Corp
Performance |
Timeline |
Robinsons Retail Holdings |
Manulife Financial Corp |
Robinsons Retail and Manulife Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Robinsons Retail and Manulife Financial
The main advantage of trading using opposite Robinsons Retail and Manulife Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robinsons Retail position performs unexpectedly, Manulife Financial 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 Financial will offset losses from the drop in Manulife Financial's long position.Robinsons Retail vs. Manulife Financial Corp | Robinsons Retail vs. Union Bank of | Robinsons Retail vs. STI Education Systems | Robinsons Retail vs. Manila Mining Corp |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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