Correlation Between Manhattan Associates and Bentley Systems
Can any of the company-specific risk be diversified away by investing in both Manhattan Associates and Bentley Systems 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 Bentley Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manhattan Associates and Bentley Systems, you can compare the effects of market volatilities on Manhattan Associates and Bentley Systems 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 Bentley Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manhattan Associates and Bentley Systems.
Diversification Opportunities for Manhattan Associates and Bentley Systems
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Manhattan and Bentley is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Manhattan Associates and Bentley Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bentley Systems 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 Bentley Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bentley Systems has no effect on the direction of Manhattan Associates i.e., Manhattan Associates and Bentley Systems go up and down completely randomly.
Pair Corralation between Manhattan Associates and Bentley Systems
Given the investment horizon of 90 days Manhattan Associates is expected to generate 1.1 times more return on investment than Bentley Systems. However, Manhattan Associates is 1.1 times more volatile than Bentley Systems. It trades about 0.13 of its potential returns per unit of risk. Bentley Systems is currently generating about 0.05 per unit of risk. If you would invest 27,539 in Manhattan Associates on August 28, 2024 and sell it today you would earn a total of 1,535 from holding Manhattan Associates or generate 5.57% 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. Bentley Systems
Performance |
| Timeline |
| Manhattan Associates |
| Bentley Systems |
Manhattan Associates and Bentley Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manhattan Associates and Bentley Systems
The main advantage of trading using opposite Manhattan Associates and Bentley Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manhattan Associates position performs unexpectedly, Bentley Systems 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 Bentley Systems will offset losses from the drop in Bentley Systems' long position.| Manhattan Associates vs. Blackbaud | Manhattan Associates vs. Bentley Systems | Manhattan Associates vs. Paylocity Holdng | Manhattan Associates vs. ANSYS Inc |
| Bentley Systems vs. Appfolio | Bentley Systems vs. Workiva | Bentley Systems vs. Alarm Holdings | Bentley Systems vs. nCino 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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