Correlation Between Manhattan and Goff Corp
Can any of the company-specific risk be diversified away by investing in both Manhattan and Goff Corp 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 and Goff Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manhattan Limited and Goff Corp, you can compare the effects of market volatilities on Manhattan and Goff Corp 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 with a short position of Goff Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manhattan and Goff Corp.
Diversification Opportunities for Manhattan and Goff Corp
Good diversification
The 3 months correlation between Manhattan and Goff is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Manhattan Limited and Goff Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goff Corp and Manhattan 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 Limited are associated (or correlated) with Goff Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goff Corp has no effect on the direction of Manhattan i.e., Manhattan and Goff Corp go up and down completely randomly.
Pair Corralation between Manhattan and Goff Corp
If you would invest 0.77 in Manhattan Limited on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Manhattan Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Manhattan Limited vs. Goff Corp
Performance |
| Timeline |
| Manhattan Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Goff Corp |
Manhattan and Goff Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manhattan and Goff Corp
The main advantage of trading using opposite Manhattan and Goff Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manhattan position performs unexpectedly, Goff Corp 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 Goff Corp will offset losses from the drop in Goff Corp's long position.| Manhattan vs. EnviroGold Global Limited | Manhattan vs. Gemfields Group Limited | Manhattan vs. Pacific Ridge Exploration | Manhattan vs. Star Royalties |
| Goff Corp vs. Gemfields Group Limited | Goff Corp vs. Star Royalties | Goff Corp vs. Defiance Silver Corp | Goff Corp vs. Diamond Fields Resources |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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