Correlation Between Mannatech Incorporated and NetSol Technologies
Can any of the company-specific risk be diversified away by investing in both Mannatech Incorporated and NetSol Technologies 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 NetSol Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mannatech Incorporated and NetSol Technologies, you can compare the effects of market volatilities on Mannatech Incorporated and NetSol Technologies 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 NetSol Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mannatech Incorporated and NetSol Technologies.
Diversification Opportunities for Mannatech Incorporated and NetSol Technologies
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mannatech and NetSol is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Mannatech Incorporated and NetSol Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetSol Technologies 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 NetSol Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetSol Technologies has no effect on the direction of Mannatech Incorporated i.e., Mannatech Incorporated and NetSol Technologies go up and down completely randomly.
Pair Corralation between Mannatech Incorporated and NetSol Technologies
Given the investment horizon of 90 days Mannatech Incorporated is expected to generate 16.66 times more return on investment than NetSol Technologies. However, Mannatech Incorporated is 16.66 times more volatile than NetSol Technologies. It trades about 0.05 of its potential returns per unit of risk. NetSol Technologies is currently generating about 0.03 per unit of risk. If you would invest 1,180 in Mannatech Incorporated on September 12, 2024 and sell it today you would lose (3.00) from holding Mannatech Incorporated or give up 0.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.05% |
| Values | Daily Returns |
Mannatech Incorporated vs. NetSol Technologies
Performance |
| Timeline |
| Mannatech Incorporated |
| NetSol Technologies |
Mannatech Incorporated and NetSol Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mannatech Incorporated and NetSol Technologies
The main advantage of trading using opposite Mannatech Incorporated and NetSol Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mannatech Incorporated position performs unexpectedly, NetSol Technologies 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 NetSol Technologies will offset losses from the drop in NetSol Technologies' 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 |
| NetSol Technologies vs. Meridianlink | NetSol Technologies vs. Enfusion | NetSol Technologies vs. PDF Solutions | NetSol Technologies vs. ePlus inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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