Correlation Between Manhattan Associates and Social Life
Can any of the company-specific risk be diversified away by investing in both Manhattan Associates and Social Life 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 Social Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manhattan Associates and Social Life Network, you can compare the effects of market volatilities on Manhattan Associates and Social Life 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 Social Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manhattan Associates and Social Life.
Diversification Opportunities for Manhattan Associates and Social Life
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Manhattan and Social is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Manhattan Associates and Social Life Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Social Life Network 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 Social Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Social Life Network has no effect on the direction of Manhattan Associates i.e., Manhattan Associates and Social Life go up and down completely randomly.
Pair Corralation between Manhattan Associates and Social Life
Given the investment horizon of 90 days Manhattan Associates is expected to generate 0.09 times more return on investment than Social Life. However, Manhattan Associates is 10.71 times less risky than Social Life. It trades about 0.22 of its potential returns per unit of risk. Social Life Network is currently generating about -0.02 per unit of risk. If you would invest 26,336 in Manhattan Associates on September 1, 2024 and sell it today you would earn a total of 2,208 from holding Manhattan Associates or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manhattan Associates vs. Social Life Network
Performance |
| Timeline |
| Manhattan Associates |
| Social Life Network |
Manhattan Associates and Social Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manhattan Associates and Social Life
The main advantage of trading using opposite Manhattan Associates and Social Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manhattan Associates position performs unexpectedly, Social Life 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 Social Life will offset losses from the drop in Social Life's long position.| Manhattan Associates vs. Blackbaud | Manhattan Associates vs. Bentley Systems | Manhattan Associates vs. Paylocity Holdng | Manhattan Associates vs. ANSYS Inc |
| Social Life vs. Infobird Co | Social Life vs. Astra Veda | Social Life vs. Fernhill Corp | Social Life vs. Protek Capital |
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 Stocks Directory module to find actively traded stocks across global markets.
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