Correlation Between Mannatech Incorporated and Corpay
Can any of the company-specific risk be diversified away by investing in both Mannatech Incorporated and Corpay 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 Corpay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mannatech Incorporated and Corpay Inc, you can compare the effects of market volatilities on Mannatech Incorporated and Corpay 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 Corpay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mannatech Incorporated and Corpay.
Diversification Opportunities for Mannatech Incorporated and Corpay
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mannatech and Corpay is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Mannatech Incorporated and Corpay Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corpay Inc 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 Corpay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corpay Inc has no effect on the direction of Mannatech Incorporated i.e., Mannatech Incorporated and Corpay go up and down completely randomly.
Pair Corralation between Mannatech Incorporated and Corpay
Given the investment horizon of 90 days Mannatech Incorporated is expected to generate 6.37 times more return on investment than Corpay. However, Mannatech Incorporated is 6.37 times more volatile than Corpay Inc. It trades about 0.35 of its potential returns per unit of risk. Corpay Inc is currently generating about -0.2 per unit of risk. If you would invest 782.00 in Mannatech Incorporated on September 12, 2024 and sell it today you would earn a total of 395.00 from holding Mannatech Incorporated or generate 50.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Mannatech Incorporated vs. Corpay Inc
Performance |
| Timeline |
| Mannatech Incorporated |
| Corpay Inc |
Mannatech Incorporated and Corpay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mannatech Incorporated and Corpay
The main advantage of trading using opposite Mannatech Incorporated and Corpay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mannatech Incorporated position performs unexpectedly, Corpay 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 Corpay will offset losses from the drop in Corpay'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 |
| Corpay vs. Aquestive Therapeutics | Corpay vs. Hawkins | Corpay vs. Avient Corp | Corpay vs. Merit Medical Systems |
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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