Correlation Between Mannatech Incorporated and CapitaLand Investment
Can any of the company-specific risk be diversified away by investing in both Mannatech Incorporated and CapitaLand Investment 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 CapitaLand Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mannatech Incorporated and CapitaLand Investment Limited, you can compare the effects of market volatilities on Mannatech Incorporated and CapitaLand Investment 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 CapitaLand Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mannatech Incorporated and CapitaLand Investment.
Diversification Opportunities for Mannatech Incorporated and CapitaLand Investment
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mannatech and CapitaLand is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Mannatech Incorporated and CapitaLand Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Investment 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 CapitaLand Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapitaLand Investment has no effect on the direction of Mannatech Incorporated i.e., Mannatech Incorporated and CapitaLand Investment go up and down completely randomly.
Pair Corralation between Mannatech Incorporated and CapitaLand Investment
Given the investment horizon of 90 days Mannatech Incorporated is expected to generate 10.17 times more return on investment than CapitaLand Investment. However, Mannatech Incorporated is 10.17 times more volatile than CapitaLand Investment Limited. It trades about 0.04 of its potential returns per unit of risk. CapitaLand Investment Limited is currently generating about 0.01 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 | Very Weak |
| Accuracy | 94.34% |
| Values | Daily Returns |
Mannatech Incorporated vs. CapitaLand Investment Limited
Performance |
| Timeline |
| Mannatech Incorporated |
| CapitaLand Investment |
Mannatech Incorporated and CapitaLand Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mannatech Incorporated and CapitaLand Investment
The main advantage of trading using opposite Mannatech Incorporated and CapitaLand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mannatech Incorporated position performs unexpectedly, CapitaLand Investment 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 CapitaLand Investment will offset losses from the drop in CapitaLand Investment'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 |
| CapitaLand Investment vs. IRSA Inversiones Y | CapitaLand Investment vs. Anywhere Real Estate | CapitaLand Investment vs. Newmark Group | CapitaLand Investment vs. Wharf Real Estate |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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