Correlation Between Mangels Industrial and DXC Technology
Can any of the company-specific risk be diversified away by investing in both Mangels Industrial and DXC Technology 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 Mangels Industrial and DXC Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mangels Industrial SA and DXC Technology, you can compare the effects of market volatilities on Mangels Industrial and DXC Technology 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 Mangels Industrial with a short position of DXC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mangels Industrial and DXC Technology.
Diversification Opportunities for Mangels Industrial and DXC Technology
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mangels and DXC is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Mangels Industrial SA and DXC Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DXC Technology and Mangels Industrial 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 Mangels Industrial SA are associated (or correlated) with DXC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DXC Technology has no effect on the direction of Mangels Industrial i.e., Mangels Industrial and DXC Technology go up and down completely randomly.
Pair Corralation between Mangels Industrial and DXC Technology
Assuming the 90 days trading horizon Mangels Industrial SA is expected to generate 3.08 times more return on investment than DXC Technology. However, Mangels Industrial is 3.08 times more volatile than DXC Technology. It trades about 0.06 of its potential returns per unit of risk. DXC Technology is currently generating about -0.24 per unit of risk. If you would invest 697.00 in Mangels Industrial SA on October 25, 2024 and sell it today you would earn a total of 28.00 from holding Mangels Industrial SA or generate 4.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mangels Industrial SA vs. DXC Technology
Performance |
| Timeline |
| Mangels Industrial |
| DXC Technology |
Mangels Industrial and DXC Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mangels Industrial and DXC Technology
The main advantage of trading using opposite Mangels Industrial and DXC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mangels Industrial position performs unexpectedly, DXC Technology 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 DXC Technology will offset losses from the drop in DXC Technology's long position.| Mangels Industrial vs. Inepar SA Indstria | Mangels Industrial vs. Lupatech SA | Mangels Industrial vs. Paranapanema SA | Mangels Industrial vs. Plascar Participaes Industriais |
| DXC Technology vs. Pure Storage, | DXC Technology vs. Guidewire Software, | DXC Technology vs. Bemobi Mobile Tech | DXC Technology vs. T Mobile |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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