Correlation Between Manhattan Associates and Agilysys
Can any of the company-specific risk be diversified away by investing in both Manhattan Associates and Agilysys 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 Manhattan Associates and Agilysys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manhattan Associates and Agilysys, you can compare the effects of market volatilities on Manhattan Associates and Agilysys 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 Manhattan Associates with a short position of Agilysys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manhattan Associates and Agilysys.
Diversification Opportunities for Manhattan Associates and Agilysys
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Manhattan and Agilysys is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Manhattan Associates and Agilysys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilysys and Manhattan Associates 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 Manhattan Associates are associated (or correlated) with Agilysys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilysys has no effect on the direction of Manhattan Associates i.e., Manhattan Associates and Agilysys go up and down completely randomly.
Pair Corralation between Manhattan Associates and Agilysys
Given the investment horizon of 90 days Manhattan Associates is expected to generate 1.68 times less return on investment than Agilysys. But when comparing it to its historical volatility, Manhattan Associates is 1.34 times less risky than Agilysys. It trades about 0.05 of its potential returns per unit of risk. Agilysys is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8,572 in Agilysys on October 20, 2024 and sell it today you would earn a total of 3,609 from holding Agilysys or generate 42.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manhattan Associates vs. Agilysys
Performance |
| Timeline |
| Manhattan Associates |
| Agilysys |
Manhattan Associates and Agilysys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manhattan Associates and Agilysys
The main advantage of trading using opposite Manhattan Associates and Agilysys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manhattan Associates position performs unexpectedly, Agilysys 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 Agilysys will offset losses from the drop in Agilysys' long position.| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |