Correlation Between Manulife Fin and McEwen Mining

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

By analyzing existing cross correlation between Manulife Fin Non and McEwen Mining, you can compare the effects of market volatilities on Manulife Fin and McEwen Mining 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 Fin with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Fin and McEwen Mining.

Diversification Opportunities for Manulife Fin and McEwen Mining

0.78

Correlation Coefficient

Manulife Fin  McEwen Mining

Poor diversification

The 3 months correlation between Manulife and McEwen is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Fin Non and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Manulife Fin 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 Fin Non are associated (or correlated) with McEwen Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McEwen Mining has no effect on the direction of Manulife Fin i.e., Manulife Fin and McEwen Mining go up and down completely randomly.

Pair Corralation between Manulife Fin and McEwen Mining

Assuming the 90 days trading horizon Manulife Fin is expected to generate 5.07 times less return on investment than McEwen Mining. But when comparing it to its historical volatility, Manulife Fin Non is 6.02 times less risky than McEwen Mining. It trades about 0.25 of its potential returns per unit of risk. McEwen Mining is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  1,075  in McEwen Mining on April 24, 2025 and sell it today you would earn a total of  508.00  from holding McEwen Mining or generate 47.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Manulife Fin Non  vs.  McEwen Mining

Manulife Fin Non

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Manulife Fin Non are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Manulife Fin may actually be approaching a critical reversion point that can send shares even higher in August 2025.

McEwen Mining

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in McEwen Mining are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, McEwen Mining displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Manulife Fin and McEwen Mining

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

The idea behind Manulife Fin Non and McEwen Mining 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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.