Correlation Between Mannatech Incorporated and Virgin Group
Can any of the company-specific risk be diversified away by investing in both Mannatech Incorporated and Virgin Group 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 Virgin Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mannatech Incorporated and Virgin Group Acquisition, you can compare the effects of market volatilities on Mannatech Incorporated and Virgin Group 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 Virgin Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mannatech Incorporated and Virgin Group.
Diversification Opportunities for Mannatech Incorporated and Virgin Group
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mannatech and Virgin is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Mannatech Incorporated and Virgin Group Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virgin Group Acquisition 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 Virgin Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virgin Group Acquisition has no effect on the direction of Mannatech Incorporated i.e., Mannatech Incorporated and Virgin Group go up and down completely randomly.
Pair Corralation between Mannatech Incorporated and Virgin Group
Given the investment horizon of 90 days Mannatech Incorporated is expected to generate 18.79 times more return on investment than Virgin Group. However, Mannatech Incorporated is 18.79 times more volatile than Virgin Group Acquisition. It trades about 0.06 of its potential returns per unit of risk. Virgin Group Acquisition is currently generating about -0.02 per unit of risk. If you would invest 929.00 in Mannatech Incorporated on August 28, 2024 and sell it today you would lose (141.00) from holding Mannatech Incorporated or give up 15.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 89.95% |
| Values | Daily Returns |
Mannatech Incorporated vs. Virgin Group Acquisition
Performance |
| Timeline |
| Mannatech Incorporated |
| Virgin Group Acquisition |
Mannatech Incorporated and Virgin Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mannatech Incorporated and Virgin Group
The main advantage of trading using opposite Mannatech Incorporated and Virgin Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mannatech Incorporated position performs unexpectedly, Virgin Group 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 Virgin Group will offset losses from the drop in Virgin Group'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 |
| Virgin Group vs. Mannatech Incorporated | Virgin Group vs. Edgewell Personal Care | Virgin Group vs. Inter Parfums | Virgin Group vs. Nu Skin Enterprises |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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