Correlation Between Great Wes and Manulife Finl
Can any of the company-specific risk be diversified away by investing in both Great Wes and Manulife Finl 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 Great Wes and Manulife Finl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great Wes 515 and Manulife Finl Srs, you can compare the effects of market volatilities on Great Wes and Manulife Finl 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 Great Wes with a short position of Manulife Finl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Wes and Manulife Finl.
Diversification Opportunities for Great Wes and Manulife Finl
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Great and Manulife is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Great Wes 515 and Manulife Finl Srs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Finl Srs and Great Wes 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 Great Wes 515 are associated (or correlated) with Manulife Finl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Finl Srs has no effect on the direction of Great Wes i.e., Great Wes and Manulife Finl go up and down completely randomly.
Pair Corralation between Great Wes and Manulife Finl
Assuming the 90 days trading horizon Great Wes is expected to generate 1.07 times less return on investment than Manulife Finl. But when comparing it to its historical volatility, Great Wes 515 is 1.51 times less risky than Manulife Finl. It trades about 0.34 of its potential returns per unit of risk. Manulife Finl Srs is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,013 in Manulife Finl Srs on June 8, 2025 and sell it today you would earn a total of 165.00 from holding Manulife Finl Srs or generate 8.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Wes 515 vs. Manulife Finl Srs
Performance |
| Timeline |
| Great Wes 515 |
| Manulife Finl Srs |
Great Wes and Manulife Finl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Wes and Manulife Finl
The main advantage of trading using opposite Great Wes and Manulife Finl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Wes position performs unexpectedly, Manulife Finl 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 Finl will offset losses from the drop in Manulife Finl's long position.| Great Wes vs. Manulife Financial Corp | Great Wes vs. Manulife Fin Non | Great Wes vs. Manulife Financial Corp | Great Wes vs. Manulife Financial 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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