Correlation Between Manulife Multifactor and Sprott Physical
Can any of the company-specific risk be diversified away by investing in both Manulife Multifactor and Sprott Physical 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 Multifactor and Sprott Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manulife Multifactor Mid and Sprott Physical Uranium, you can compare the effects of market volatilities on Manulife Multifactor and Sprott Physical 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 Multifactor with a short position of Sprott Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Multifactor and Sprott Physical.
Diversification Opportunities for Manulife Multifactor and Sprott Physical
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manulife and Sprott is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Multifactor Mid and Sprott Physical Uranium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Physical Uranium and Manulife Multifactor 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 Multifactor Mid are associated (or correlated) with Sprott Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprott Physical Uranium has no effect on the direction of Manulife Multifactor i.e., Manulife Multifactor and Sprott Physical go up and down completely randomly.
Pair Corralation between Manulife Multifactor and Sprott Physical
Assuming the 90 days trading horizon Manulife Multifactor Mid is expected to generate 0.43 times more return on investment than Sprott Physical. However, Manulife Multifactor Mid is 2.32 times less risky than Sprott Physical. It trades about -0.4 of its potential returns per unit of risk. Sprott Physical Uranium is currently generating about -0.23 per unit of risk. If you would invest 4,766 in Manulife Multifactor Mid on September 24, 2024 and sell it today you would lose (328.00) from holding Manulife Multifactor Mid or give up 6.88% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Manulife Multifactor Mid vs. Sprott Physical Uranium
Performance |
Timeline |
Manulife Multifactor Mid |
Sprott Physical Uranium |
Manulife Multifactor and Sprott Physical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Manulife Multifactor and Sprott Physical
The main advantage of trading using opposite Manulife Multifactor and Sprott Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Multifactor position performs unexpectedly, Sprott Physical 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 Sprott Physical will offset losses from the drop in Sprott Physical's long position.Manulife Multifactor vs. iShares SP Mid Cap | Manulife Multifactor vs. iShares Core SP | Manulife Multifactor vs. iShares MSCI Europe | Manulife Multifactor vs. iShares Core MSCI |
Sprott Physical vs. Manulife Multifactor Mid | Sprott Physical vs. Manulife Multifactor Canadian | Sprott Physical vs. Manulife Multifactor Large | Sprott Physical vs. Manulife Multifactor Canadian |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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