Correlation Between Mannatech Incorporated and Amexdrug
Can any of the company-specific risk be diversified away by investing in both Mannatech Incorporated and Amexdrug 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 Mannatech Incorporated and Amexdrug into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mannatech Incorporated and Amexdrug, you can compare the effects of market volatilities on Mannatech Incorporated and Amexdrug 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 Mannatech Incorporated with a short position of Amexdrug. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mannatech Incorporated and Amexdrug.
Diversification Opportunities for Mannatech Incorporated and Amexdrug
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mannatech and Amexdrug is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mannatech Incorporated and Amexdrug in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amexdrug and Mannatech Incorporated 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 Mannatech Incorporated are associated (or correlated) with Amexdrug. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amexdrug has no effect on the direction of Mannatech Incorporated i.e., Mannatech Incorporated and Amexdrug go up and down completely randomly.
Pair Corralation between Mannatech Incorporated and Amexdrug
Given the investment horizon of 90 days Mannatech Incorporated is expected to generate 1.39 times more return on investment than Amexdrug. However, Mannatech Incorporated is 1.39 times more volatile than Amexdrug. It trades about 0.04 of its potential returns per unit of risk. Amexdrug is currently generating about 0.04 per unit of risk. If you would invest 1,879 in Mannatech Incorporated on September 12, 2024 and sell it today you would lose (632.00) from holding Mannatech Incorporated or give up 33.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.53% |
| Values | Daily Returns |
Mannatech Incorporated vs. Amexdrug
Performance |
| Timeline |
| Mannatech Incorporated |
| Amexdrug |
Mannatech Incorporated and Amexdrug Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mannatech Incorporated and Amexdrug
The main advantage of trading using opposite Mannatech Incorporated and Amexdrug positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mannatech Incorporated position performs unexpectedly, Amexdrug 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 Amexdrug will offset losses from the drop in Amexdrug's long position.| Mannatech Incorporated vs. Edgewell Personal Care | Mannatech Incorporated vs. Inter Parfums | Mannatech Incorporated vs. Nu Skin Enterprises | Mannatech Incorporated vs. Helen of Troy |
| Amexdrug vs. Sphere Entertainment Co | Amexdrug vs. Axalta Coating Systems | Amexdrug vs. Origin Materials | Amexdrug vs. Flexible Solutions International |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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