Correlation Between Manitowoc and CNHI Old
Can any of the company-specific risk be diversified away by investing in both Manitowoc and CNHI Old 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 Manitowoc and CNHI Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manitowoc and CNHI Old, you can compare the effects of market volatilities on Manitowoc and CNHI Old 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 Manitowoc with a short position of CNHI Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitowoc and CNHI Old.
Diversification Opportunities for Manitowoc and CNHI Old
Pay attention - limited upside
The 3 months correlation between Manitowoc and CNHI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Manitowoc and CNHI Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNHI Old and Manitowoc 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 Manitowoc are associated (or correlated) with CNHI Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNHI Old has no effect on the direction of Manitowoc i.e., Manitowoc and CNHI Old go up and down completely randomly.
Pair Corralation between Manitowoc and CNHI Old
If you would invest 877.00 in Manitowoc on October 20, 2024 and sell it today you would earn a total of 51.00 from holding Manitowoc or generate 5.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Manitowoc vs. CNHI Old
Performance |
| Timeline |
| Manitowoc |
| CNHI Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Manitowoc and CNHI Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitowoc and CNHI Old
The main advantage of trading using opposite Manitowoc and CNHI Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitowoc position performs unexpectedly, CNHI Old 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 CNHI Old will offset losses from the drop in CNHI Old's long position.| Manitowoc vs. Oshkosh | Manitowoc vs. Alamo Group | Manitowoc vs. Wabash National | Manitowoc vs. Hyster Yale Materials Handling |
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.
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