Correlation Between Manitowoc and JPX Global
Can any of the company-specific risk be diversified away by investing in both Manitowoc and JPX Global 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 JPX Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manitowoc and JPX Global, you can compare the effects of market volatilities on Manitowoc and JPX Global 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 JPX Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitowoc and JPX Global.
Diversification Opportunities for Manitowoc and JPX Global
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Manitowoc and JPX is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Manitowoc and JPX Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPX Global 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 JPX Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPX Global has no effect on the direction of Manitowoc i.e., Manitowoc and JPX Global go up and down completely randomly.
Pair Corralation between Manitowoc and JPX Global
If you would invest 890.00 in Manitowoc on September 2, 2024 and sell it today you would earn a total of 173.00 from holding Manitowoc or generate 19.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitowoc vs. JPX Global
Performance |
| Timeline |
| Manitowoc |
| JPX Global |
Manitowoc and JPX Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitowoc and JPX Global
The main advantage of trading using opposite Manitowoc and JPX Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitowoc position performs unexpectedly, JPX Global 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 JPX Global will offset losses from the drop in JPX Global's long position.| Manitowoc vs. Oshkosh | Manitowoc vs. Alamo Group | Manitowoc vs. Wabash National | Manitowoc vs. Hyster Yale Materials Handling |
| JPX Global vs. Seychelle Environmtl | JPX Global vs. Energy and Water | JPX Global vs. One World Universe | JPX Global vs. Vow ASA |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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