Correlation Between Enfusion and Manhattan Associates
Can any of the company-specific risk be diversified away by investing in both Enfusion 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 Enfusion and Manhattan Associates into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enfusion and Manhattan Associates, you can compare the effects of market volatilities on Enfusion 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 Enfusion with a short position of Manhattan Associates. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enfusion and Manhattan Associates.
Diversification Opportunities for Enfusion and Manhattan Associates
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Enfusion and Manhattan is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Enfusion and Manhattan Associates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manhattan Associates and Enfusion 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 Enfusion 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 Enfusion i.e., Enfusion and Manhattan Associates go up and down completely randomly.
Pair Corralation between Enfusion and Manhattan Associates
Given the investment horizon of 90 days Enfusion is expected to generate 1.13 times more return on investment than Manhattan Associates. However, Enfusion is 1.13 times more volatile than Manhattan Associates. It trades about 0.34 of its potential returns per unit of risk. Manhattan Associates is currently generating about 0.01 per unit of risk. If you would invest 884.00 in Enfusion on August 24, 2024 and sell it today you would earn a total of 137.00 from holding Enfusion or generate 15.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Enfusion vs. Manhattan Associates
Performance |
| Timeline |
| Enfusion |
| Manhattan Associates |
Enfusion and Manhattan Associates Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enfusion and Manhattan Associates
The main advantage of trading using opposite Enfusion and Manhattan Associates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enfusion 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.| Enfusion vs. ON24 Inc | Enfusion vs. Paycor HCM | Enfusion vs. E2open Parent Holdings | Enfusion vs. Braze Inc |
| Manhattan Associates vs. Alkami Technology | Manhattan Associates vs. Paycor HCM | Manhattan Associates vs. Procore Technologies | Manhattan Associates vs. Enfusion |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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