Correlation Between Mannatech Incorporated and Kimberly Clark
Can any of the company-specific risk be diversified away by investing in both Mannatech Incorporated and Kimberly Clark 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 Kimberly Clark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mannatech Incorporated and Kimberly Clark de Mexico, you can compare the effects of market volatilities on Mannatech Incorporated and Kimberly Clark 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 Kimberly Clark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mannatech Incorporated and Kimberly Clark.
Diversification Opportunities for Mannatech Incorporated and Kimberly Clark
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mannatech and Kimberly is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Mannatech Incorporated and Kimberly Clark de Mexico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimberly Clark de 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 Kimberly Clark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimberly Clark de has no effect on the direction of Mannatech Incorporated i.e., Mannatech Incorporated and Kimberly Clark go up and down completely randomly.
Pair Corralation between Mannatech Incorporated and Kimberly Clark
Given the investment horizon of 90 days Mannatech Incorporated is expected to generate 31.25 times more return on investment than Kimberly Clark. However, Mannatech Incorporated is 31.25 times more volatile than Kimberly Clark de Mexico. It trades about 0.06 of its potential returns per unit of risk. Kimberly Clark de Mexico is currently generating about -0.05 per unit of risk. If you would invest 840.00 in Mannatech Incorporated on September 2, 2024 and sell it today you would earn a total of 10.00 from holding Mannatech Incorporated or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.32% |
| Values | Daily Returns |
Mannatech Incorporated vs. Kimberly Clark de Mexico
Performance |
| Timeline |
| Mannatech Incorporated |
| Kimberly Clark de |
Mannatech Incorporated and Kimberly Clark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mannatech Incorporated and Kimberly Clark
The main advantage of trading using opposite Mannatech Incorporated and Kimberly Clark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mannatech Incorporated position performs unexpectedly, Kimberly Clark 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 Kimberly Clark will offset losses from the drop in Kimberly Clark's long position.| Mannatech Incorporated vs. Seneca Foods Corp | Mannatech Incorporated vs. Central Garden Pet | Mannatech Incorporated vs. Central Garden Pet | Mannatech Incorporated vs. Lifeway Foods |
| Kimberly Clark vs. Reckitt Benckiser Group | Kimberly Clark vs. Church Dwight | Kimberly Clark vs. LOreal Co ADR | Kimberly Clark vs. Shiseido Company |
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 Directory module to find actively traded commodities issued by global exchanges.
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