Correlation Between Manitex International and Terex
Can any of the company-specific risk be diversified away by investing in both Manitex International and Terex 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 Manitex International and Terex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manitex International and Terex, you can compare the effects of market volatilities on Manitex International and Terex 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 Manitex International with a short position of Terex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitex International and Terex.
Diversification Opportunities for Manitex International and Terex
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Manitex and Terex is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Manitex International and Terex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terex and Manitex International 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 Manitex International are associated (or correlated) with Terex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terex has no effect on the direction of Manitex International i.e., Manitex International and Terex go up and down completely randomly.
Pair Corralation between Manitex International and Terex
Given the investment horizon of 90 days Manitex International is expected to generate 0.13 times more return on investment than Terex. However, Manitex International is 7.46 times less risky than Terex. It trades about 0.12 of its potential returns per unit of risk. Terex is currently generating about -0.02 per unit of risk. If you would invest 570.00 in Manitex International on November 1, 2024 and sell it today you would earn a total of 10.00 from holding Manitex International or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 70.0% |
| Values | Daily Returns |
Manitex International vs. Terex
Performance |
| Timeline |
| Manitex International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Terex |
Manitex International and Terex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitex International and Terex
The main advantage of trading using opposite Manitex International and Terex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitex International position performs unexpectedly, Terex 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 Terex will offset losses from the drop in Terex's long position.| Manitex International vs. Astec Industries | Manitex International vs. Hyster Yale Materials Handling | Manitex International vs. Shyft Group | Manitex International vs. Rev Group |
| Terex vs. Oshkosh | Terex vs. Astec Industries | Terex vs. Hyster Yale Materials Handling | Terex vs. Manitowoc |
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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