Correlation Between Manulife Financial and Alithya Group

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

Diversification Opportunities for Manulife Financial and Alithya Group

-0.48

Correlation Coefficient

Manulife Financial  Alithya Group

Very good diversification

The 3 months correlation between Manulife and Alithya is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Manulife Financial Corp and Alithya Group inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alithya Group inc 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 Alithya Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alithya Group inc has no effect on the direction of Manulife Financial i.e., Manulife Financial and Alithya Group go up and down completely randomly.

Pair Corralation between Manulife Financial and Alithya Group

Assuming the 90 days trading horizon Manulife Financial Corp is expected to under-perform the Alithya Group. But the stock apears to be less risky and, when comparing its historical volatility, Manulife Financial Corp is 3.17 times less risky than Alithya Group. The stock trades about -0.01 of its potential returns per unit of risk. The Alithya Group inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  175.00  in Alithya Group inc on May 26, 2025 and sell it today you would earn a total of  13.00  from holding Alithya Group inc or generate 7.43% return on investment over 90 days.

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

Manulife Financial Corp  vs.  Alithya Group inc

Manulife Financial Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Manulife Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Manulife Financial is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Alithya Group inc

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Alithya Group inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Alithya Group may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Manulife Financial and Alithya Group

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

The idea behind Manulife Financial Corp and Alithya Group inc 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.