Correlation Between Manulife Financial and Metropolitan Bank
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Metropolitan Bank 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 Metropolitan Bank 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 Metropolitan Bank Trust, you can compare the effects of market volatilities on Manulife Financial and Metropolitan Bank 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 Metropolitan Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Metropolitan Bank.
Diversification Opportunities for Manulife Financial and Metropolitan Bank
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Manulife and Metropolitan is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Metropolitan Bank Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metropolitan Bank Trust 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 Metropolitan Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metropolitan Bank Trust has no effect on the direction of Manulife Financial i.e., Manulife Financial and Metropolitan Bank go up and down completely randomly.
Pair Corralation between Manulife Financial and Metropolitan Bank
Assuming the 90 days trading horizon Manulife Financial Corp is expected to under-perform the Metropolitan Bank. In addition to that, Manulife Financial is 1.68 times more volatile than Metropolitan Bank Trust. It trades about -0.04 of its total potential returns per unit of risk. Metropolitan Bank Trust is currently generating about -0.06 per unit of volatility. If you would invest 7,235 in Metropolitan Bank Trust on June 13, 2025 and sell it today you would lose (345.00) from holding Metropolitan Bank Trust or give up 4.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 79.03% |
| Values | Daily Returns |
Manulife Financial Corp vs. Metropolitan Bank Trust
Performance |
| Timeline |
| Manulife Financial Corp |
| Metropolitan Bank Trust |
Manulife Financial and Metropolitan Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Metropolitan Bank
The main advantage of trading using opposite Manulife Financial and Metropolitan Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Metropolitan Bank 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 Metropolitan Bank will offset losses from the drop in Metropolitan Bank's long position.| Manulife Financial vs. Century Pacific Food | Manulife Financial vs. Robinsons Retail Holdings | Manulife Financial vs. Apex Mining Co | Manulife Financial vs. Pacificonline Systems |
| Metropolitan Bank vs. Semirara Mining Corp | Metropolitan Bank vs. Rizal Commercial Banking | Metropolitan Bank vs. Philex Mining Corp | Metropolitan Bank vs. Integrated Micro Electronics |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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