Correlation Between Manhattan Associates and ASGN
Can any of the company-specific risk be diversified away by investing in both Manhattan Associates and ASGN 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 ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manhattan Associates and ASGN Inc, you can compare the effects of market volatilities on Manhattan Associates and ASGN 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 ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manhattan Associates and ASGN.
Diversification Opportunities for Manhattan Associates and ASGN
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Manhattan and ASGN is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Manhattan Associates and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc 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 ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of Manhattan Associates i.e., Manhattan Associates and ASGN go up and down completely randomly.
Pair Corralation between Manhattan Associates and ASGN
Given the investment horizon of 90 days Manhattan Associates is expected to generate 1.16 times more return on investment than ASGN. However, Manhattan Associates is 1.16 times more volatile than ASGN Inc. It trades about 0.02 of its potential returns per unit of risk. ASGN Inc is currently generating about 0.0 per unit of risk. If you would invest 14,436 in Manhattan Associates on December 11, 2024 and sell it today you would earn a total of 2,128 from holding Manhattan Associates or generate 14.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manhattan Associates vs. ASGN Inc
Performance |
| Timeline |
| Manhattan Associates |
| ASGN Inc |
Manhattan Associates and ASGN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manhattan Associates and ASGN
The main advantage of trading using opposite Manhattan Associates and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manhattan Associates position performs unexpectedly, ASGN 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 ASGN will offset losses from the drop in ASGN's 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |