Correlation Between Manulife Financial and Bankers Petroleum
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Bankers Petroleum 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 Financial and Bankers Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manulife Financial Corp and Bankers Petroleum, you can compare the effects of market volatilities on Manulife Financial and Bankers Petroleum 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 Financial with a short position of Bankers Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Bankers Petroleum.
Diversification Opportunities for Manulife Financial and Bankers Petroleum
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Manulife and Bankers is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Bankers Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankers Petroleum and Manulife Financial 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 Financial Corp are associated (or correlated) with Bankers Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankers Petroleum has no effect on the direction of Manulife Financial i.e., Manulife Financial and Bankers Petroleum go up and down completely randomly.
Pair Corralation between Manulife Financial and Bankers Petroleum
Assuming the 90 days trading horizon Manulife Financial Corp is expected to generate 0.6 times more return on investment than Bankers Petroleum. However, Manulife Financial Corp is 1.66 times less risky than Bankers Petroleum. It trades about 0.08 of its potential returns per unit of risk. Bankers Petroleum is currently generating about 0.05 per unit of risk. If you would invest 2,468 in Manulife Financial Corp on August 31, 2025 and sell it today you would earn a total of 75.00 from holding Manulife Financial Corp or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Manulife Financial Corp vs. Bankers Petroleum
Performance |
| Timeline |
| Manulife Financial Corp |
| Bankers Petroleum |
Manulife Financial and Bankers Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Bankers Petroleum
The main advantage of trading using opposite Manulife Financial and Bankers Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Bankers Petroleum 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 Bankers Petroleum will offset losses from the drop in Bankers Petroleum's long position.| Manulife Financial vs. Firan Technology Group | Manulife Financial vs. Canso Select Opportunities | Manulife Financial vs. Ramp Metals | Manulife Financial vs. Enerev5 Metals |
| Bankers Petroleum vs. VersaBank | Bankers Petroleum vs. Leons Furniture Limited | Bankers Petroleum vs. E L Financial Corp | Bankers Petroleum vs. Royal Bank of |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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