Correlation Between Mannatech Incorporated and Legacy Education
Can any of the company-specific risk be diversified away by investing in both Mannatech Incorporated and Legacy Education 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 Legacy Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mannatech Incorporated and Legacy Education, you can compare the effects of market volatilities on Mannatech Incorporated and Legacy Education 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 Legacy Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mannatech Incorporated and Legacy Education.
Diversification Opportunities for Mannatech Incorporated and Legacy Education
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mannatech and Legacy is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Mannatech Incorporated and Legacy Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legacy Education 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 Legacy Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Legacy Education has no effect on the direction of Mannatech Incorporated i.e., Mannatech Incorporated and Legacy Education go up and down completely randomly.
Pair Corralation between Mannatech Incorporated and Legacy Education
Given the investment horizon of 90 days Mannatech Incorporated is expected to generate 9.71 times more return on investment than Legacy Education. However, Mannatech Incorporated is 9.71 times more volatile than Legacy Education. It trades about 0.04 of its potential returns per unit of risk. Legacy Education is currently generating about 0.29 per unit of risk. If you would invest 1,831 in Mannatech Incorporated on September 13, 2024 and sell it today you would lose (610.00) from holding Mannatech Incorporated or give up 33.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 11.56% |
| Values | Daily Returns |
Mannatech Incorporated vs. Legacy Education
Performance |
| Timeline |
| Mannatech Incorporated |
| Legacy Education |
Mannatech Incorporated and Legacy Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mannatech Incorporated and Legacy Education
The main advantage of trading using opposite Mannatech Incorporated and Legacy Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mannatech Incorporated position performs unexpectedly, Legacy Education 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 Legacy Education will offset losses from the drop in Legacy Education'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 |
| Legacy Education vs. European Wax Center | Legacy Education vs. Lion One Metals | Legacy Education vs. Aerofoam Metals | Legacy Education vs. Mannatech Incorporated |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |