Correlation Between China Aircraft and Mannatech Incorporated
Can any of the company-specific risk be diversified away by investing in both China Aircraft and Mannatech Incorporated 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 China Aircraft and Mannatech Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Aircraft Leasing and Mannatech Incorporated, you can compare the effects of market volatilities on China Aircraft and Mannatech Incorporated 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 China Aircraft with a short position of Mannatech Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Aircraft and Mannatech Incorporated.
Diversification Opportunities for China Aircraft and Mannatech Incorporated
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Mannatech is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding China Aircraft Leasing and Mannatech Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mannatech Incorporated and China Aircraft 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 China Aircraft Leasing are associated (or correlated) with Mannatech Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mannatech Incorporated has no effect on the direction of China Aircraft i.e., China Aircraft and Mannatech Incorporated go up and down completely randomly.
Pair Corralation between China Aircraft and Mannatech Incorporated
Assuming the 90 days horizon China Aircraft is expected to generate 11.78 times less return on investment than Mannatech Incorporated. But when comparing it to its historical volatility, China Aircraft Leasing is 16.13 times less risky than Mannatech Incorporated. It trades about 0.08 of its potential returns per unit of risk. Mannatech Incorporated is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 840.00 in Mannatech Incorporated on September 3, 2024 and sell it today you would earn a total of 72.00 from holding Mannatech Incorporated or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.28% |
| Values | Daily Returns |
China Aircraft Leasing vs. Mannatech Incorporated
Performance |
| Timeline |
| China Aircraft Leasing |
| Mannatech Incorporated |
China Aircraft and Mannatech Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Aircraft and Mannatech Incorporated
The main advantage of trading using opposite China Aircraft and Mannatech Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Aircraft position performs unexpectedly, Mannatech Incorporated 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 Mannatech Incorporated will offset losses from the drop in Mannatech Incorporated's long position.| China Aircraft vs. United Rentals | China Aircraft vs. Ashtead Gro | China Aircraft vs. Ashtead Group plc | China Aircraft vs. AerCap Holdings NV |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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