Correlation Between Manulife Financial and Vigil Health

Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Vigil Health 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 Vigil Health 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 Vigil Health Solutions, you can compare the effects of market volatilities on Manulife Financial and Vigil Health 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 Vigil Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Vigil Health.

Diversification Opportunities for Manulife Financial and Vigil Health

0.0

Correlation Coefficient

Manulife Financial  Vigil Health

Pay attention - limited upside

The 3 months correlation between Manulife and Vigil is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Vigil Health Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vigil Health Solutions 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 Vigil Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vigil Health Solutions has no effect on the direction of Manulife Financial i.e., Manulife Financial and Vigil Health go up and down completely randomly.

Pair Corralation between Manulife Financial and Vigil Health

If you would invest  1,672  in Manulife Financial Corp on December 22, 2024 and sell it today you would earn a total of  72.00  from holding Manulife Financial Corp or generate 4.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Manulife Financial Corp  vs.  Vigil Health Solutions

Manulife Financial Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Manulife Financial Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, Manulife Financial is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Vigil Health Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vigil Health Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Vigil Health is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Manulife Financial and Vigil Health

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

The idea behind Manulife Financial Corp and Vigil Health Solutions 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.

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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..