Correlation Between Manhattan Associates and Pegasystems
Can any of the company-specific risk be diversified away by investing in both Manhattan Associates and Pegasystems 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 Pegasystems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manhattan Associates and Pegasystems, you can compare the effects of market volatilities on Manhattan Associates and Pegasystems 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 Pegasystems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manhattan Associates and Pegasystems.
Diversification Opportunities for Manhattan Associates and Pegasystems
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Manhattan and Pegasystems is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Manhattan Associates and Pegasystems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pegasystems 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 Pegasystems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pegasystems has no effect on the direction of Manhattan Associates i.e., Manhattan Associates and Pegasystems go up and down completely randomly.
Pair Corralation between Manhattan Associates and Pegasystems
Given the investment horizon of 90 days Manhattan Associates is expected to generate 9.27 times less return on investment than Pegasystems. But when comparing it to its historical volatility, Manhattan Associates is 1.4 times less risky than Pegasystems. It trades about 0.05 of its potential returns per unit of risk. Pegasystems is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 9,437 in Pegasystems on October 24, 2024 and sell it today you would earn a total of 1,142 from holding Pegasystems or generate 12.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Manhattan Associates vs. Pegasystems
Performance |
| Timeline |
| Manhattan Associates |
| Pegasystems |
Manhattan Associates and Pegasystems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manhattan Associates and Pegasystems
The main advantage of trading using opposite Manhattan Associates and Pegasystems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manhattan Associates position performs unexpectedly, Pegasystems 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 Pegasystems will offset losses from the drop in Pegasystems' long position.| Manhattan Associates vs. Blackbaud | Manhattan Associates vs. Bentley Systems | Manhattan Associates vs. Paylocity Holdng | Manhattan Associates vs. ANSYS Inc |
| Pegasystems vs. Wex Inc | Pegasystems vs. Cognex | Pegasystems vs. Progress Software | Pegasystems vs. Fair Isaac |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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