Correlation Between Mannatech Incorporated and CCA Industries
Can any of the company-specific risk be diversified away by investing in both Mannatech Incorporated and CCA Industries 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 CCA Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mannatech Incorporated and CCA Industries, you can compare the effects of market volatilities on Mannatech Incorporated and CCA Industries 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 CCA Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mannatech Incorporated and CCA Industries.
Diversification Opportunities for Mannatech Incorporated and CCA Industries
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mannatech and CCA is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Mannatech Incorporated and CCA Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCA Industries 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 CCA Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCA Industries has no effect on the direction of Mannatech Incorporated i.e., Mannatech Incorporated and CCA Industries go up and down completely randomly.
Pair Corralation between Mannatech Incorporated and CCA Industries
Given the investment horizon of 90 days Mannatech Incorporated is expected to generate 4.54 times more return on investment than CCA Industries. However, Mannatech Incorporated is 4.54 times more volatile than CCA Industries. It trades about 0.04 of its potential returns per unit of risk. CCA Industries is currently generating about 0.09 per unit of risk. If you would invest 2,123 in Mannatech Incorporated on September 3, 2024 and sell it today you would lose (1,273) from holding Mannatech Incorporated or give up 59.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.35% |
| Values | Daily Returns |
Mannatech Incorporated vs. CCA Industries
Performance |
| Timeline |
| Mannatech Incorporated |
| CCA Industries |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mannatech Incorporated and CCA Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mannatech Incorporated and CCA Industries
The main advantage of trading using opposite Mannatech Incorporated and CCA Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mannatech Incorporated position performs unexpectedly, CCA Industries 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 CCA Industries will offset losses from the drop in CCA Industries' 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 |
| CCA Industries vs. Firan Technology Group | CCA Industries vs. FitLife Brands, Common | CCA Industries vs. ENB Financial Corp | CCA Industries vs. Surge Components |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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