Correlation Between Alithya Group and Manulife Financial

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

By analyzing existing cross correlation between Alithya Group inc and Manulife Financial Corp, you can compare the effects of market volatilities on Alithya Group and Manulife Financial 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 Alithya Group with a short position of Manulife Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alithya Group and Manulife Financial.

Diversification Opportunities for Alithya Group and Manulife Financial

-0.56

Correlation Coefficient

Alithya Group  Manulife Financial

Excellent diversification

The 3 months correlation between Alithya and Manulife is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Alithya Group inc and Manulife Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manulife Financial Corp and Alithya Group 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 Alithya Group inc are associated (or correlated) with Manulife Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manulife Financial Corp has no effect on the direction of Alithya Group i.e., Alithya Group and Manulife Financial go up and down completely randomly.

Pair Corralation between Alithya Group and Manulife Financial

Assuming the 90 days trading horizon Alithya Group inc is expected to under-perform the Manulife Financial. In addition to that, Alithya Group is 2.58 times more volatile than Manulife Financial Corp. It trades about -0.13 of its total potential returns per unit of risk. Manulife Financial Corp is currently generating about 0.1 per unit of volatility. If you would invest  4,153  in Manulife Financial Corp on July 7, 2025 and sell it today you would earn a total of  304.00  from holding Manulife Financial Corp or generate 7.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Alithya Group inc  vs.  Manulife Financial Corp

Alithya Group inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Alithya Group inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in November 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Manulife Financial Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Manulife Financial Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Manulife Financial may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Alithya Group and Manulife Financial

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

The idea behind Alithya Group inc and Manulife Financial 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.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.