Correlation Between Purpose Bitcoin and Manulife Smart

Can any of the company-specific risk be diversified away by investing in both Purpose Bitcoin and Manulife Smart 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 Purpose Bitcoin and Manulife Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Purpose Bitcoin CAD and Manulife Smart International, you can compare the effects of market volatilities on Purpose Bitcoin and Manulife Smart 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 Purpose Bitcoin with a short position of Manulife Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Purpose Bitcoin and Manulife Smart.

Diversification Opportunities for Purpose Bitcoin and Manulife Smart

0.06

Correlation Coefficient

Purpose Bitcoin  Manulife Smart

Significant diversification

The 3 months correlation between Purpose and Manulife is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Purpose Bitcoin CAD and Manulife Smart International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Smart Inter and Purpose Bitcoin 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 Purpose Bitcoin CAD are associated (or correlated) with Manulife Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Smart Inter has no effect on the direction of Purpose Bitcoin i.e., Purpose Bitcoin and Manulife Smart go up and down completely randomly.

Pair Corralation between Purpose Bitcoin and Manulife Smart

Assuming the 90 days trading horizon Purpose Bitcoin CAD is expected to under-perform the Manulife Smart. In addition to that, Purpose Bitcoin is 8.81 times more volatile than Manulife Smart International. It trades about -0.07 of its total potential returns per unit of risk. Manulife Smart International is currently generating about 0.11 per unit of volatility. If you would invest  1,205  in Manulife Smart International on November 29, 2024 and sell it today you would earn a total of  26.00  from holding Manulife Smart International or generate 2.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Purpose Bitcoin CAD  vs.  Manulife Smart International

Purpose Bitcoin CAD

Risk-Adjusted Performance

Very Weak

Over the last 90 days Purpose Bitcoin CAD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain very healthy which may send shares a bit higher in March 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Manulife Smart Inter

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Manulife Smart International are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, Manulife Smart is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Purpose Bitcoin and Manulife Smart

The main advantage of trading using opposite Purpose Bitcoin and Manulife Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Purpose Bitcoin position performs unexpectedly, Manulife Smart 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 Smart will offset losses from the drop in Manulife Smart's long position.

The idea behind Purpose Bitcoin CAD and Manulife Smart International 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..