Correlation Between Manulife Financial and Qyou Media

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

Diversification Opportunities for Manulife Financial and Qyou Media

-0.47

Correlation Coefficient

Manulife Financial  Qyou Media

Very good diversification

The 3 months correlation between Manulife and Qyou is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Qyou Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qyou Media 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 Qyou Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qyou Media has no effect on the direction of Manulife Financial i.e., Manulife Financial and Qyou Media go up and down completely randomly.

Pair Corralation between Manulife Financial and Qyou Media

Assuming the 90 days trading horizon Manulife Financial Corp is expected to generate 0.13 times more return on investment than Qyou Media. However, Manulife Financial Corp is 7.57 times less risky than Qyou Media. It trades about 0.29 of its potential returns per unit of risk. Qyou Media is currently generating about 0.01 per unit of risk. If you would invest  3,709  in Manulife Financial Corp on September 4, 2024 and sell it today you would earn a total of  828.00  from holding Manulife Financial Corp or generate 22.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Manulife Financial Corp  vs.  Qyou Media

Manulife Financial Corp

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Manulife Financial Corp are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Manulife Financial displayed solid returns over the last few months and may actually be approaching a breakup point.

Qyou Media

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Qyou Media are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Qyou Media may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Manulife Financial and Qyou Media

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

The idea behind Manulife Financial Corp and Qyou Media 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.