Correlation Between Manulife Fundamental and Fidelity Tactical

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

Diversification Opportunities for Manulife Fundamental and Fidelity Tactical

0.42

Correlation Coefficient

Manulife Fundamental  Fidelity Tactical

Very weak diversification

The 3 months correlation between Manulife and Fidelity is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Fundamental Equity and Fidelity Tactical High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Tactical High 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 Fidelity Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Tactical High has no effect on the direction of Manulife Fundamental i.e., Manulife Fundamental and Fidelity Tactical go up and down completely randomly.

Pair Corralation between Manulife Fundamental and Fidelity Tactical

Assuming the 90 days trading horizon Manulife Fundamental is expected to generate 4.3 times less return on investment than Fidelity Tactical. In addition to that, Manulife Fundamental is 1.05 times more volatile than Fidelity Tactical High. It trades about 0.06 of its total potential returns per unit of risk. Fidelity Tactical High is currently generating about 0.28 per unit of volatility. If you would invest  981.00  in Fidelity Tactical High on April 24, 2025 and sell it today you would earn a total of  101.00  from holding Fidelity Tactical High or generate 10.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	67.74%
Values	Daily Returns

Manulife Fundamental Equity  vs.  Fidelity Tactical High

Manulife Fundamental

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Manulife Fundamental Equity are ranked lower than 4 (%) 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 current stock price disarray, may contribute to short-term losses for the investors.

Fidelity Tactical High

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Tactical High are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of very weak basic indicators, Fidelity Tactical may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Manulife Fundamental and Fidelity Tactical

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

The idea behind Manulife Fundamental Equity and Fidelity Tactical High 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.