Correlation Between Manulife Financial and Kua Investments

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

Diversification Opportunities for Manulife Financial and Kua Investments

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Manulife Financial and Kua Investments

If you would invest  4,182  in Manulife Financial Corp on August 27, 2025 and sell it today you would earn a total of  746.00  from holding Manulife Financial Corp or generate 17.84% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Manulife Financial Corp  vs.  Kua Investments

 Performance 
       Timeline  
Manulife Financial Corp 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Manulife Financial Corp are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Manulife Financial displayed solid returns over the last few months and may actually be approaching a breakup point.
Kua Investments 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Kua Investments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Kua Investments is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Manulife Financial and Kua Investments Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Manulife Financial and Kua Investments

The main advantage of trading using opposite Manulife Financial and Kua Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Kua Investments 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 Kua Investments will offset losses from the drop in Kua Investments' long position.
The idea behind Manulife Financial Corp and Kua Investments 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.
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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