Correlation Between Manulife Financial and Evome Medical

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Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Evome Medical 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 Evome Medical 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 Evome Medical Technologies, you can compare the effects of market volatilities on Manulife Financial and Evome Medical 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 Evome Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Evome Medical.

Diversification Opportunities for Manulife Financial and Evome Medical

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Manulife and Evome is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Evome Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evome Medical Techno 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 Evome Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evome Medical Techno has no effect on the direction of Manulife Financial i.e., Manulife Financial and Evome Medical go up and down completely randomly.

Pair Corralation between Manulife Financial and Evome Medical

If you would invest  2,455  in Manulife Financial Corp on August 22, 2025 and sell it today you would earn a total of  63.00  from holding Manulife Financial Corp or generate 2.57% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Manulife Financial Corp  vs.  Evome Medical Technologies

 Performance 
       Timeline  
Manulife Financial Corp 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Manulife Financial Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, Manulife Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Evome Medical Techno 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Evome Medical Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable primary indicators, Evome Medical is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Manulife Financial and Evome Medical Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Manulife Financial and Evome Medical

The main advantage of trading using opposite Manulife Financial and Evome Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Evome Medical 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 Evome Medical will offset losses from the drop in Evome Medical's long position.
The idea behind Manulife Financial Corp and Evome Medical Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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.

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