Correlation Between Manulife Multifactor and IShares SP
Can any of the company-specific risk be diversified away by investing in both Manulife Multifactor and IShares SP 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 Multifactor and IShares SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manulife Multifactor Mid and iShares SP Small Cap, you can compare the effects of market volatilities on Manulife Multifactor and IShares SP 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 Multifactor with a short position of IShares SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Multifactor and IShares SP.
Diversification Opportunities for Manulife Multifactor and IShares SP
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Manulife and IShares is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Multifactor Mid and iShares SP Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SP Small and Manulife Multifactor 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 Multifactor Mid are associated (or correlated) with IShares SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SP Small has no effect on the direction of Manulife Multifactor i.e., Manulife Multifactor and IShares SP go up and down completely randomly.
Pair Corralation between Manulife Multifactor and IShares SP
Assuming the 90 days trading horizon Manulife Multifactor Mid is expected to under-perform the IShares SP. But the etf apears to be less risky and, when comparing its historical volatility, Manulife Multifactor Mid is 1.21 times less risky than IShares SP. The etf trades about -0.01 of its potential returns per unit of risk. The iShares SP Small Cap is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,784 in iShares SP Small Cap on August 21, 2025 and sell it today you would lose (4.00) from holding iShares SP Small Cap or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manulife Multifactor Mid vs. iShares SP Small Cap
Performance |
| Timeline |
| Manulife Multifactor Mid |
| iShares SP Small |
Manulife Multifactor and IShares SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manulife Multifactor and IShares SP
The main advantage of trading using opposite Manulife Multifactor and IShares SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Multifactor position performs unexpectedly, IShares SP 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 IShares SP will offset losses from the drop in IShares SP's long position.| Manulife Multifactor vs. BMO Conservative ETF | Manulife Multifactor vs. BMO Global Communications | Manulife Multifactor vs. iShares SP Small Cap | Manulife Multifactor vs. Fidelity High Quality |
| IShares SP vs. iShares SP Small Cap | IShares SP vs. TD Q Canadian | IShares SP vs. TD Q Low | IShares SP vs. Harvest Travel Leisure |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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