Correlation Between Mannatech Incorporated and Mechel OAO
Can any of the company-specific risk be diversified away by investing in both Mannatech Incorporated and Mechel OAO 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 Mechel OAO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mannatech Incorporated and Mechel OAO, you can compare the effects of market volatilities on Mannatech Incorporated and Mechel OAO 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 Mechel OAO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mannatech Incorporated and Mechel OAO.
Diversification Opportunities for Mannatech Incorporated and Mechel OAO
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mannatech and Mechel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mannatech Incorporated and Mechel OAO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mechel OAO 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 Mechel OAO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mechel OAO has no effect on the direction of Mannatech Incorporated i.e., Mannatech Incorporated and Mechel OAO go up and down completely randomly.
Pair Corralation between Mannatech Incorporated and Mechel OAO
If you would invest (100.00) in Mechel OAO on December 4, 2024 and sell it today you would earn a total of 100.00 from holding Mechel OAO or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Mannatech Incorporated vs. Mechel OAO
Performance |
| Timeline |
| Mannatech Incorporated |
| Mechel OAO |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Mannatech Incorporated and Mechel OAO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mannatech Incorporated and Mechel OAO
The main advantage of trading using opposite Mannatech Incorporated and Mechel OAO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mannatech Incorporated position performs unexpectedly, Mechel OAO 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 Mechel OAO will offset losses from the drop in Mechel OAO'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 |
| Mechel OAO vs. Stagwell | Mechel OAO vs. Fluent Inc | Mechel OAO vs. United Guardian | Mechel OAO vs. Lindblad Expeditions Holdings |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |