Correlation Between Man Infraconstructio and Great Eastern

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Can any of the company-specific risk be diversified away by investing in both Man Infraconstructio and Great Eastern 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 Man Infraconstructio and Great Eastern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Man Infraconstruction Limited and The Great Eastern, you can compare the effects of market volatilities on Man Infraconstructio and Great Eastern 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 Man Infraconstructio with a short position of Great Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Man Infraconstructio and Great Eastern.

Diversification Opportunities for Man Infraconstructio and Great Eastern

-0.37
  Correlation Coefficient

Very good diversification

The 3 months correlation between Man and Great is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Man Infraconstruction Limited and The Great Eastern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Eastern and Man Infraconstructio 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 Man Infraconstruction Limited are associated (or correlated) with Great Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Eastern has no effect on the direction of Man Infraconstructio i.e., Man Infraconstructio and Great Eastern go up and down completely randomly.

Pair Corralation between Man Infraconstructio and Great Eastern

Assuming the 90 days trading horizon Man Infraconstruction Limited is expected to generate 1.11 times more return on investment than Great Eastern. However, Man Infraconstructio is 1.11 times more volatile than The Great Eastern. It trades about 0.08 of its potential returns per unit of risk. The Great Eastern is currently generating about 0.06 per unit of risk. If you would invest  8,005  in Man Infraconstruction Limited on November 2, 2024 and sell it today you would earn a total of  11,640  from holding Man Infraconstruction Limited or generate 145.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Man Infraconstruction Limited  vs.  The Great Eastern

 Performance 
       Timeline  
Man Infraconstruction 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Man Infraconstruction Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, Man Infraconstructio is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.
Great Eastern 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days The Great Eastern has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's technical indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Man Infraconstructio and Great Eastern Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Man Infraconstructio and Great Eastern

The main advantage of trading using opposite Man Infraconstructio and Great Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Man Infraconstructio position performs unexpectedly, Great Eastern 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 Great Eastern will offset losses from the drop in Great Eastern's long position.
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The idea behind Man Infraconstruction Limited and The Great Eastern pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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