Correlation Between Mannatech Incorporated and Bel Fuse
Can any of the company-specific risk be diversified away by investing in both Mannatech Incorporated and Bel Fuse 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 Bel Fuse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mannatech Incorporated and Bel Fuse A, you can compare the effects of market volatilities on Mannatech Incorporated and Bel Fuse 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 Bel Fuse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mannatech Incorporated and Bel Fuse.
Diversification Opportunities for Mannatech Incorporated and Bel Fuse
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mannatech and Bel is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Mannatech Incorporated and Bel Fuse A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bel Fuse A 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 Bel Fuse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bel Fuse A has no effect on the direction of Mannatech Incorporated i.e., Mannatech Incorporated and Bel Fuse go up and down completely randomly.
Pair Corralation between Mannatech Incorporated and Bel Fuse
Given the investment horizon of 90 days Mannatech Incorporated is expected to generate 2.26 times more return on investment than Bel Fuse. However, Mannatech Incorporated is 2.26 times more volatile than Bel Fuse A. It trades about -0.03 of its potential returns per unit of risk. Bel Fuse A is currently generating about -0.13 per unit of risk. If you would invest 826.00 in Mannatech Incorporated on August 29, 2024 and sell it today you would lose (40.00) from holding Mannatech Incorporated or give up 4.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mannatech Incorporated vs. Bel Fuse A
Performance |
| Timeline |
| Mannatech Incorporated |
| Bel Fuse A |
Mannatech Incorporated and Bel Fuse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mannatech Incorporated and Bel Fuse
The main advantage of trading using opposite Mannatech Incorporated and Bel Fuse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mannatech Incorporated position performs unexpectedly, Bel Fuse 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 Bel Fuse will offset losses from the drop in Bel Fuse'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 |
| Bel Fuse vs. Richardson Electronics | Bel Fuse vs. Interlink Electronics | Bel Fuse vs. SigmaTron International | Bel Fuse vs. Ouster Inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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