Correlation Between Evolve Cryptocurrencies and Manulife Multifactor

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

By analyzing existing cross correlation between Evolve Cryptocurrencies ETF and Manulife Multifactor Developed, you can compare the effects of market volatilities on Evolve Cryptocurrencies and Manulife Multifactor 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 Evolve Cryptocurrencies with a short position of Manulife Multifactor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolve Cryptocurrencies and Manulife Multifactor.

Diversification Opportunities for Evolve Cryptocurrencies and Manulife Multifactor

-0.25

Correlation Coefficient

Evolve Cryptocurrencies  Manulife Multifactor

Very good diversification

The 3 months correlation between Evolve and Manulife is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Evolve Cryptocurrencies ETF and Manulife Multifactor Developed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Multifactor and Evolve Cryptocurrencies 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 Evolve Cryptocurrencies ETF are associated (or correlated) with Manulife Multifactor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Multifactor has no effect on the direction of Evolve Cryptocurrencies i.e., Evolve Cryptocurrencies and Manulife Multifactor go up and down completely randomly.

Pair Corralation between Evolve Cryptocurrencies and Manulife Multifactor

Assuming the 90 days trading horizon Evolve Cryptocurrencies ETF is expected to generate 2.54 times more return on investment than Manulife Multifactor. However, Evolve Cryptocurrencies is 2.54 times more volatile than Manulife Multifactor Developed. It trades about 0.08 of its potential returns per unit of risk. Manulife Multifactor Developed is currently generating about 0.16 per unit of risk. If you would invest  590.00  in Evolve Cryptocurrencies ETF on December 2, 2024 and sell it today you would earn a total of  1,124  from holding Evolve Cryptocurrencies ETF or generate 190.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	30.85%
Values	Daily Returns

Evolve Cryptocurrencies ETF  vs.  Manulife Multifactor Developed

Evolve Cryptocurrencies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Evolve Cryptocurrencies ETF 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 fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Manulife Multifactor

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Manulife Multifactor Developed are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Manulife Multifactor is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Evolve Cryptocurrencies and Manulife Multifactor

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

The idea behind Evolve Cryptocurrencies ETF and Manulife Multifactor Developed 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 Commodity Directory module to find actively traded commodities issued by global exchanges.