Correlation Between Manhattan Associates and DLH Holdings
Can any of the company-specific risk be diversified away by investing in both Manhattan Associates and DLH Holdings 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 DLH Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manhattan Associates and DLH Holdings Corp, you can compare the effects of market volatilities on Manhattan Associates and DLH Holdings 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 DLH Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manhattan Associates and DLH Holdings.
Diversification Opportunities for Manhattan Associates and DLH Holdings
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manhattan and DLH is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Manhattan Associates and DLH Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DLH Holdings Corp 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 DLH Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DLH Holdings Corp has no effect on the direction of Manhattan Associates i.e., Manhattan Associates and DLH Holdings go up and down completely randomly.
Pair Corralation between Manhattan Associates and DLH Holdings
Given the investment horizon of 90 days Manhattan Associates is expected to generate 1.57 times less return on investment than DLH Holdings. But when comparing it to its historical volatility, Manhattan Associates is 1.7 times less risky than DLH Holdings. It trades about 0.09 of its potential returns per unit of risk. DLH Holdings Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 813.00 in DLH Holdings Corp on August 30, 2024 and sell it today you would earn a total of 42.00 from holding DLH Holdings Corp or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Manhattan Associates vs. DLH Holdings Corp
Performance |
| Timeline |
| Manhattan Associates |
| DLH Holdings Corp |
Manhattan Associates and DLH Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manhattan Associates and DLH Holdings
The main advantage of trading using opposite Manhattan Associates and DLH Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manhattan Associates position performs unexpectedly, DLH Holdings 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 DLH Holdings will offset losses from the drop in DLH Holdings' long position.| Manhattan Associates vs. Blackbaud | Manhattan Associates vs. Bentley Systems | Manhattan Associates vs. Paylocity Holdng | Manhattan Associates vs. ANSYS Inc |
| DLH Holdings vs. Manhattan Associates | DLH Holdings vs. Paycom Soft | DLH Holdings vs. Clearwater Analytics Holdings | DLH Holdings vs. Procore Technologies |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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