Correlation Between Manulife Financial and DigiPlus Interactive

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

Diversification Opportunities for Manulife Financial and DigiPlus Interactive

0.0

Correlation Coefficient

Manulife Financial  DigiPlus Interactive

Pay attention - limited upside

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

Pair Corralation between Manulife Financial and DigiPlus Interactive

If you would invest  149,194  in Manulife Financial Corp on April 24, 2025 and sell it today you would earn a total of  18,006  from holding Manulife Financial Corp or generate 12.07% 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.  DigiPlus Interactive Corp

Manulife Financial Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Manulife Financial Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Manulife Financial exhibited solid returns over the last few months and may actually be approaching a breakup point.

DigiPlus Interactive Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days DigiPlus Interactive Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, DigiPlus Interactive is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Manulife Financial and DigiPlus Interactive

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

The idea behind Manulife Financial Corp and DigiPlus Interactive Corp 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.