Correlation Between Astec Industries and Manitex International
Can any of the company-specific risk be diversified away by investing in both Astec Industries and Manitex International 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 Astec Industries and Manitex International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astec Industries and Manitex International, you can compare the effects of market volatilities on Astec Industries and Manitex International 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 Astec Industries with a short position of Manitex International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astec Industries and Manitex International.
Diversification Opportunities for Astec Industries and Manitex International
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Astec and Manitex is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Astec Industries and Manitex International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manitex International and Astec Industries 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 Astec Industries are associated (or correlated) with Manitex International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manitex International has no effect on the direction of Astec Industries i.e., Astec Industries and Manitex International go up and down completely randomly.
Pair Corralation between Astec Industries and Manitex International
Given the investment horizon of 90 days Astec Industries is expected to generate 7.63 times more return on investment than Manitex International. However, Astec Industries is 7.63 times more volatile than Manitex International. It trades about 0.08 of its potential returns per unit of risk. Manitex International is currently generating about 0.12 per unit of risk. If you would invest 3,190 in Astec Industries on November 1, 2024 and sell it today you would earn a total of 367.00 from holding Astec Industries or generate 11.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.0% |
| Values | Daily Returns |
Astec Industries vs. Manitex International
Performance |
| Timeline |
| Astec Industries |
| Manitex International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Astec Industries and Manitex International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astec Industries and Manitex International
The main advantage of trading using opposite Astec Industries and Manitex International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astec Industries position performs unexpectedly, Manitex International 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 Manitex International will offset losses from the drop in Manitex International's long position.| Astec Industries vs. Hyster Yale Materials Handling | Astec Industries vs. Shyft Group | Astec Industries vs. Rev Group | Astec Industries vs. Lindsay |
| Manitex International vs. Astec Industries | Manitex International vs. Hyster Yale Materials Handling | Manitex International vs. Shyft Group | Manitex International vs. Rev Group |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |