Correlation Between Accord Financial and Manulife Financial
Can any of the company-specific risk be diversified away by investing in both Accord Financial and Manulife Financial 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 Accord Financial and Manulife Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accord Financial Corp and Manulife Financial Corp, you can compare the effects of market volatilities on Accord Financial and Manulife Financial 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 Accord Financial with a short position of Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accord Financial and Manulife Financial.
Diversification Opportunities for Accord Financial and Manulife Financial
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Accord and Manulife is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Accord Financial Corp and Manulife Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Financial Corp and Accord 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 Accord Financial Corp are associated (or correlated) with Manulife Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Financial Corp has no effect on the direction of Accord Financial i.e., Accord Financial and Manulife Financial go up and down completely randomly.
Pair Corralation between Accord Financial and Manulife Financial
Assuming the 90 days trading horizon Accord Financial Corp is expected to generate 0.88 times more return on investment than Manulife Financial. However, Accord Financial Corp is 1.14 times less risky than Manulife Financial. It trades about 0.0 of its potential returns per unit of risk. Manulife Financial Corp is currently generating about -0.01 per unit of risk. If you would invest 380.00 in Accord Financial Corp on December 5, 2024 and sell it today you would lose (1.00) from holding Accord Financial Corp or give up 0.26% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Accord Financial Corp vs. Manulife Financial Corp
Performance |
Timeline |
Accord Financial Corp |
Manulife Financial Corp |
Accord Financial and Manulife Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Accord Financial and Manulife Financial
The main advantage of trading using opposite Accord Financial and Manulife Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accord Financial position performs unexpectedly, Manulife Financial 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 Manulife Financial will offset losses from the drop in Manulife Financial's long position.Accord Financial vs. Algoma Central | Accord Financial vs. Clairvest Group | Accord Financial vs. Clarke Inc | Accord Financial vs. ADF Group |
Manulife Financial vs. Bank of Nova | Manulife Financial vs. Sun Life Financial | Manulife Financial vs. Toronto Dominion Bank | Manulife Financial 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
CEOs Directory Screen CEOs from public companies around the world | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Stocks Directory Find actively traded stocks across global markets |