Correlation Between Mannatech Incorporated and Plexus Corp
Can any of the company-specific risk be diversified away by investing in both Mannatech Incorporated and Plexus Corp 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 Plexus Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mannatech Incorporated and Plexus Corp, you can compare the effects of market volatilities on Mannatech Incorporated and Plexus Corp 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 Plexus Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mannatech Incorporated and Plexus Corp.
Diversification Opportunities for Mannatech Incorporated and Plexus Corp
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mannatech and Plexus is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Mannatech Incorporated and Plexus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plexus Corp 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 Plexus Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plexus Corp has no effect on the direction of Mannatech Incorporated i.e., Mannatech Incorporated and Plexus Corp go up and down completely randomly.
Pair Corralation between Mannatech Incorporated and Plexus Corp
Given the investment horizon of 90 days Mannatech Incorporated is expected to under-perform the Plexus Corp. In addition to that, Mannatech Incorporated is 1.79 times more volatile than Plexus Corp. It trades about -0.03 of its total potential returns per unit of risk. Plexus Corp is currently generating about 0.22 per unit of volatility. If you would invest 14,332 in Plexus Corp on August 29, 2024 and sell it today you would earn a total of 1,901 from holding Plexus Corp or generate 13.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mannatech Incorporated vs. Plexus Corp
Performance |
| Timeline |
| Mannatech Incorporated |
| Plexus Corp |
Mannatech Incorporated and Plexus Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mannatech Incorporated and Plexus Corp
The main advantage of trading using opposite Mannatech Incorporated and Plexus Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mannatech Incorporated position performs unexpectedly, Plexus Corp 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 Plexus Corp will offset losses from the drop in Plexus Corp'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 |
| Plexus Corp vs. Richardson Electronics | Plexus Corp vs. Interlink Electronics | Plexus Corp vs. SigmaTron International | Plexus Corp vs. Ouster 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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