Correlation Between Manulife Fundamental and IProfile ETF

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

By analyzing existing cross correlation between Manulife Fundamental Equity and iProfile ETF Private, you can compare the effects of market volatilities on Manulife Fundamental and IProfile ETF 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 Fundamental with a short position of IProfile ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Fundamental and IProfile ETF.

Diversification Opportunities for Manulife Fundamental and IProfile ETF

0.08

Correlation Coefficient

Manulife Fundamental  IProfile ETF

Significant diversification

The 3 months correlation between Manulife and IProfile is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Fundamental Equity and iProfile ETF Private in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iProfile ETF Private and Manulife Fundamental 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 Fundamental Equity are associated (or correlated) with IProfile ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iProfile ETF Private has no effect on the direction of Manulife Fundamental i.e., Manulife Fundamental and IProfile ETF go up and down completely randomly.

Pair Corralation between Manulife Fundamental and IProfile ETF

Assuming the 90 days trading horizon Manulife Fundamental is expected to generate 2.5 times less return on investment than IProfile ETF. But when comparing it to its historical volatility, Manulife Fundamental Equity is 1.07 times less risky than IProfile ETF. It trades about 0.1 of its potential returns per unit of risk. iProfile ETF Private is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  1,409  in iProfile ETF Private on April 25, 2025 and sell it today you would earn a total of  144.00  from holding iProfile ETF Private or generate 10.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	69.35%
Values	Daily Returns

Manulife Fundamental Equity  vs.  iProfile ETF Private

Manulife Fundamental

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Manulife Fundamental Equity are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of very healthy basic indicators, Manulife Fundamental is not utilizing all of its potentials. The new stock price disarray, may contribute to short-term losses for the investors.

iProfile ETF Private

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iProfile ETF Private are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. Despite quite unfluctuating essential indicators, IProfile ETF may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Manulife Fundamental and IProfile ETF

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

The idea behind Manulife Fundamental Equity and iProfile ETF Private 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.