Correlation Between Manulife Financial and Trupanion
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Trupanion 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 Trupanion 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 Trupanion, you can compare the effects of market volatilities on Manulife Financial and Trupanion 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 Trupanion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Trupanion.
Diversification Opportunities for Manulife Financial and Trupanion
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Manulife and Trupanion is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Trupanion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trupanion 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 Trupanion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trupanion has no effect on the direction of Manulife Financial i.e., Manulife Financial and Trupanion go up and down completely randomly.
Pair Corralation between Manulife Financial and Trupanion
Assuming the 90 days trading horizon Manulife Financial Corp is expected to generate 0.53 times more return on investment than Trupanion. However, Manulife Financial Corp is 1.9 times less risky than Trupanion. It trades about 0.21 of its potential returns per unit of risk. Trupanion is currently generating about -0.18 per unit of risk. If you would invest 4,197 in Manulife Financial Corp on August 18, 2025 and sell it today you would earn a total of 629.00 from holding Manulife Financial Corp or generate 14.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Manulife Financial Corp vs. Trupanion
Performance |
| Timeline |
| Manulife Financial Corp |
| Trupanion |
Manulife Financial and Trupanion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Financial and Trupanion
The main advantage of trading using opposite Manulife Financial and Trupanion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Trupanion 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 Trupanion will offset losses from the drop in Trupanion's long position.| Manulife Financial vs. Great West Lifeco | Manulife Financial vs. Power | Manulife Financial vs. National Bank of | Manulife Financial vs. Sun Life Financial |
| Trupanion vs. Horace Mann Educators | Trupanion vs. The Baldwin Insurance | Trupanion vs. Northwest Bancshares | Trupanion vs. Tri Continental Closed |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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