Correlation Between Manhattan Scients and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Manhattan Scients and Dow Jones 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 Scients and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manhattan Scients and Dow Jones Industrial, you can compare the effects of market volatilities on Manhattan Scients and Dow Jones 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 Scients with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manhattan Scients and Dow Jones.
Diversification Opportunities for Manhattan Scients and Dow Jones
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Manhattan and Dow is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Manhattan Scients and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Manhattan Scients 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 Scients are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Manhattan Scients i.e., Manhattan Scients and Dow Jones go up and down completely randomly.
Pair Corralation between Manhattan Scients and Dow Jones
Given the investment horizon of 90 days Manhattan Scients is expected to generate 7.19 times less return on investment than Dow Jones. In addition to that, Manhattan Scients is 11.28 times more volatile than Dow Jones Industrial. It trades about 0.0 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.21 per unit of volatility. If you would invest 4,237,436 in Dow Jones Industrial on August 25, 2024 and sell it today you would earn a total of 192,215 from holding Dow Jones Industrial or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manhattan Scients vs. Dow Jones Industrial
Performance |
| Timeline |
Manhattan Scients and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Manhattan Scients
Pair trading matchups for Manhattan Scients
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Manhattan Scients and Dow Jones
The main advantage of trading using opposite Manhattan Scients and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manhattan Scients position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Manhattan Scients vs. VentriPoint Diagnostics | Manhattan Scients vs. Cannabix Technologies | Manhattan Scients vs. Accelerate Diagnostics | Manhattan Scients vs. Venus Concept |
| Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Titan Machinery | Dow Jones vs. Simon Property Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |