Correlation Between Manulife Financial and Savaria
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Savaria 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 Savaria 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 Savaria, you can compare the effects of market volatilities on Manulife Financial and Savaria 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 Savaria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Savaria.
Diversification Opportunities for Manulife Financial and Savaria
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Manulife and Savaria is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Savaria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savaria 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 Savaria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savaria has no effect on the direction of Manulife Financial i.e., Manulife Financial and Savaria go up and down completely randomly.
Pair Corralation between Manulife Financial and Savaria
Assuming the 90 days trading horizon Manulife Financial Corp is expected to generate 0.98 times more return on investment than Savaria. However, Manulife Financial Corp is 1.02 times less risky than Savaria. It trades about 0.24 of its potential returns per unit of risk. Savaria is currently generating about 0.07 per unit of risk. If you would invest 4,176 in Manulife Financial Corp on August 30, 2025 and sell it today you would earn a total of 726.00 from holding Manulife Financial Corp or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Financial Corp vs. Savaria
Performance |
| Timeline |
| Manulife Financial Corp |
| Savaria |
Manulife Financial and Savaria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Savaria
The main advantage of trading using opposite Manulife Financial and Savaria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Savaria 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 Savaria will offset losses from the drop in Savaria's long position.| Manulife Financial vs. Chemtrade Logistics Income | Manulife Financial vs. Altair Resources | Manulife Financial vs. Hemisphere Energy | Manulife Financial vs. Bausch Health Companies |
| Savaria vs. Homerun Resources | Savaria vs. Fairfax Financial Holdings | Savaria vs. Quipt Home Medical | Savaria 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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