Correlation Between Nextplat Corp and Mannatech Incorporated
Can any of the company-specific risk be diversified away by investing in both Nextplat Corp and Mannatech Incorporated 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 Nextplat Corp and Mannatech Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextplat Corp and Mannatech Incorporated, you can compare the effects of market volatilities on Nextplat Corp and Mannatech Incorporated 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 Nextplat Corp with a short position of Mannatech Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextplat Corp and Mannatech Incorporated.
Diversification Opportunities for Nextplat Corp and Mannatech Incorporated
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nextplat and Mannatech is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Nextplat Corp and Mannatech Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mannatech Incorporated and Nextplat Corp 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 Nextplat Corp are associated (or correlated) with Mannatech Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mannatech Incorporated has no effect on the direction of Nextplat Corp i.e., Nextplat Corp and Mannatech Incorporated go up and down completely randomly.
Pair Corralation between Nextplat Corp and Mannatech Incorporated
Given the investment horizon of 90 days Nextplat Corp is expected to under-perform the Mannatech Incorporated. But the stock apears to be less risky and, when comparing its historical volatility, Nextplat Corp is 21.28 times less risky than Mannatech Incorporated. The stock trades about -0.05 of its potential returns per unit of risk. The Mannatech Incorporated is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 750.00 in Mannatech Incorporated on September 2, 2024 and sell it today you would earn a total of 100.00 from holding Mannatech Incorporated or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.03% |
| Values | Daily Returns |
Nextplat Corp vs. Mannatech Incorporated
Performance |
| Timeline |
| Nextplat Corp |
| Mannatech Incorporated |
Nextplat Corp and Mannatech Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextplat Corp and Mannatech Incorporated
The main advantage of trading using opposite Nextplat Corp and Mannatech Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextplat Corp position performs unexpectedly, Mannatech Incorporated 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 Mannatech Incorporated will offset losses from the drop in Mannatech Incorporated's long position.| Nextplat Corp vs. Ke Holdings | Nextplat Corp vs. nCino Inc | Nextplat Corp vs. Kingsoft Cloud Holdings | Nextplat Corp vs. Jfrog |
| Mannatech Incorporated vs. Seneca Foods Corp | Mannatech Incorporated vs. Central Garden Pet | Mannatech Incorporated vs. Central Garden Pet | Mannatech Incorporated vs. Lifeway Foods |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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