Correlation Between Manulife Financial and Willis Towers
Can any of the company-specific risk be diversified away by investing in both Manulife Financial and Willis Towers 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 Willis Towers 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 Willis Towers Watson, you can compare the effects of market volatilities on Manulife Financial and Willis Towers 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 Willis Towers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Financial and Willis Towers.
Diversification Opportunities for Manulife Financial and Willis Towers
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Manulife and Willis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Willis Towers Watson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willis Towers Watson 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 Willis Towers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willis Towers Watson has no effect on the direction of Manulife Financial i.e., Manulife Financial and Willis Towers go up and down completely randomly.
Pair Corralation between Manulife Financial and Willis Towers
If you would invest 2,186 in Manulife Financial Corp on February 4, 2024 and sell it today you would earn a total of 215.00 from holding Manulife Financial Corp or generate 9.84% 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. Willis Towers Watson
Performance |
Timeline |
Manulife Financial Corp |
Willis Towers Watson |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Manulife Financial and Willis Towers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Manulife Financial and Willis Towers
The main advantage of trading using opposite Manulife Financial and Willis Towers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manulife Financial position performs unexpectedly, Willis Towers 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 Willis Towers will offset losses from the drop in Willis Towers' long position.Manulife Financial vs. Prudential Financial | Manulife Financial vs. MetLife | Manulife Financial vs. Unum Group | Manulife Financial vs. Jackson Financial |
Willis Towers vs. National Beverage Corp | Willis Towers vs. Reservoir Media | Willis Towers vs. Chester Mining | Willis Towers vs. Marfrig Global Foods |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
CEOs Directory Screen CEOs from public companies around the world | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |