Correlation Between Manhattan Associates and Shopify
Can any of the company-specific risk be diversified away by investing in both Manhattan Associates and Shopify 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 Shopify into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manhattan Associates and Shopify, you can compare the effects of market volatilities on Manhattan Associates and Shopify 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 Shopify. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manhattan Associates and Shopify.
Diversification Opportunities for Manhattan Associates and Shopify
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Manhattan and Shopify is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Manhattan Associates and Shopify in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shopify 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 Shopify. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shopify has no effect on the direction of Manhattan Associates i.e., Manhattan Associates and Shopify go up and down completely randomly.
Pair Corralation between Manhattan Associates and Shopify
Given the investment horizon of 90 days Manhattan Associates is expected to under-perform the Shopify. In addition to that, Manhattan Associates is 1.9 times more volatile than Shopify. It trades about -0.19 of its total potential returns per unit of risk. Shopify is currently generating about 0.05 per unit of volatility. If you would invest 11,424 in Shopify on November 5, 2024 and sell it today you would earn a total of 256.00 from holding Shopify or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manhattan Associates vs. Shopify
Performance |
| Timeline |
| Manhattan Associates |
| Shopify |
Manhattan Associates and Shopify Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manhattan Associates and Shopify
The main advantage of trading using opposite Manhattan Associates and Shopify positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manhattan Associates position performs unexpectedly, Shopify 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 Shopify will offset losses from the drop in Shopify'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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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