Correlation Between EGain and Manhattan Associates
Can any of the company-specific risk be diversified away by investing in both EGain and Manhattan Associates 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 EGain and Manhattan Associates into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eGain and Manhattan Associates, you can compare the effects of market volatilities on EGain and Manhattan Associates 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 EGain with a short position of Manhattan Associates. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGain and Manhattan Associates.
Diversification Opportunities for EGain and Manhattan Associates
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EGain and Manhattan is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding eGain and Manhattan Associates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manhattan Associates and EGain 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 eGain are associated (or correlated) with Manhattan Associates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manhattan Associates has no effect on the direction of EGain i.e., EGain and Manhattan Associates go up and down completely randomly.
Pair Corralation between EGain and Manhattan Associates
Given the investment horizon of 90 days eGain is expected to under-perform the Manhattan Associates. In addition to that, EGain is 1.66 times more volatile than Manhattan Associates. It trades about -0.01 of its total potential returns per unit of risk. Manhattan Associates is currently generating about 0.07 per unit of volatility. If you would invest 18,550 in Manhattan Associates on August 31, 2024 and sell it today you would earn a total of 9,994 from holding Manhattan Associates or generate 53.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
eGain vs. Manhattan Associates
Performance |
| Timeline |
| eGain |
| Manhattan Associates |
EGain and Manhattan Associates Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EGain and Manhattan Associates
The main advantage of trading using opposite EGain and Manhattan Associates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGain position performs unexpectedly, Manhattan Associates 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 Manhattan Associates will offset losses from the drop in Manhattan Associates' long position.| EGain vs. Issuer Direct Corp | EGain vs. Research Solutions | EGain vs. Alkami Technology | EGain vs. Agilysys |
| Manhattan Associates vs. Blackbaud | Manhattan Associates vs. Bentley Systems | Manhattan Associates vs. Paylocity Holdng | Manhattan Associates vs. ANSYS Inc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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