Correlation Between Manhattan Associates and Workiva
Can any of the company-specific risk be diversified away by investing in both Manhattan Associates and Workiva 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 Workiva into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manhattan Associates and Workiva, you can compare the effects of market volatilities on Manhattan Associates and Workiva 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 Workiva. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manhattan Associates and Workiva.
Diversification Opportunities for Manhattan Associates and Workiva
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Manhattan and Workiva is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Manhattan Associates and Workiva in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workiva 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 Workiva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workiva has no effect on the direction of Manhattan Associates i.e., Manhattan Associates and Workiva go up and down completely randomly.
Pair Corralation between Manhattan Associates and Workiva
Given the investment horizon of 90 days Manhattan Associates is expected to under-perform the Workiva. In addition to that, Manhattan Associates is 1.4 times more volatile than Workiva. It trades about -0.24 of its total potential returns per unit of risk. Workiva is currently generating about -0.11 per unit of volatility. If you would invest 11,214 in Workiva on November 7, 2024 and sell it today you would lose (1,159) from holding Workiva or give up 10.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manhattan Associates vs. Workiva
Performance |
| Timeline |
| Manhattan Associates |
| Workiva |
Manhattan Associates and Workiva Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manhattan Associates and Workiva
The main advantage of trading using opposite Manhattan Associates and Workiva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manhattan Associates position performs unexpectedly, Workiva 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 Workiva will offset losses from the drop in Workiva'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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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