Correlation Between Manulife Fundamental and NBI Target

Can any of the company-specific risk be diversified away by investing in both Manulife Fundamental and NBI Target 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 NBI Target 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 NBI Target 2028, you can compare the effects of market volatilities on Manulife Fundamental and NBI Target 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 NBI Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manulife Fundamental and NBI Target.

Diversification Opportunities for Manulife Fundamental and NBI Target

0.0

Correlation Coefficient

Manulife Fundamental  NBI Target

Pay attention - limited upside

The 3 months correlation between Manulife and NBI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Fundamental Equity and NBI Target 2028 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NBI Target 2028 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 NBI Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NBI Target 2028 has no effect on the direction of Manulife Fundamental i.e., Manulife Fundamental and NBI Target go up and down completely randomly.

Pair Corralation between Manulife Fundamental and NBI Target

If you would invest  1,000.00  in Manulife Fundamental Equity on April 21, 2025 and sell it today you would earn a total of  27.00  from holding Manulife Fundamental Equity or generate 2.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.88%
Values	Daily Returns

Manulife Fundamental Equity  vs.  NBI Target 2028

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 9 (%) 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.

NBI Target 2028

Risk-Adjusted Performance

Very Weak

Over the last 90 days NBI Target 2028 has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, NBI Target is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Manulife Fundamental and NBI Target

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

The idea behind Manulife Fundamental Equity and NBI Target 2028 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.