Correlation Between Manulife Smart and Dynamic Active

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

By analyzing existing cross correlation between Manulife Smart Dividend and Dynamic Active Canadian, you can compare the effects of market volatilities on Manulife Smart and Dynamic Active 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 Smart with a short position of Dynamic Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Smart and Dynamic Active.

Diversification Opportunities for Manulife Smart and Dynamic Active

0.0

Correlation Coefficient

Manulife Smart  Dynamic Active

Pay attention - limited upside

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

Pair Corralation between Manulife Smart and Dynamic Active

If you would invest  3,726  in Dynamic Active Canadian on April 24, 2025 and sell it today you would earn a total of  327.00  from holding Dynamic Active Canadian or generate 8.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Manulife Smart Dividend  vs.  Dynamic Active Canadian

Manulife Smart Dividend

Risk-Adjusted Performance

Very Strong

Over the last 90 days Manulife Smart Dividend has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Manulife Smart is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Dynamic Active Canadian

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Dynamic Active Canadian are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Dynamic Active may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Manulife Smart and Dynamic Active

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

The idea behind Manulife Smart Dividend and Dynamic Active Canadian 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.