Correlation Between Mannatech Incorporated and One Gas
Can any of the company-specific risk be diversified away by investing in both Mannatech Incorporated and One Gas 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 One Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mannatech Incorporated and One Gas, you can compare the effects of market volatilities on Mannatech Incorporated and One Gas 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 One Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mannatech Incorporated and One Gas.
Diversification Opportunities for Mannatech Incorporated and One Gas
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mannatech and One is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mannatech Incorporated and One Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Gas 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 One Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Gas has no effect on the direction of Mannatech Incorporated i.e., Mannatech Incorporated and One Gas go up and down completely randomly.
Pair Corralation between Mannatech Incorporated and One Gas
Given the investment horizon of 90 days Mannatech Incorporated is expected to generate 3.49 times more return on investment than One Gas. However, Mannatech Incorporated is 3.49 times more volatile than One Gas. It trades about 0.17 of its potential returns per unit of risk. One Gas is currently generating about 0.03 per unit of risk. If you would invest 776.00 in Mannatech Incorporated on September 12, 2024 and sell it today you would earn a total of 401.00 from holding Mannatech Incorporated or generate 51.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.83% |
| Values | Daily Returns |
Mannatech Incorporated vs. One Gas
Performance |
| Timeline |
| Mannatech Incorporated |
| One Gas |
Mannatech Incorporated and One Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mannatech Incorporated and One Gas
The main advantage of trading using opposite Mannatech Incorporated and One Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mannatech Incorporated position performs unexpectedly, One Gas 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 One Gas will offset losses from the drop in One Gas' 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 |
| One Gas vs. Northwest Natural Gas | One Gas vs. Chesapeake Utilities | One Gas vs. NewJersey Resources | One Gas vs. RGC Resources |
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 Stocks Directory module to find actively traded stocks across global markets.
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