Correlation Between NYSE Composite and Manitex International
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Manitex International 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 NYSE Composite and Manitex International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Manitex International, you can compare the effects of market volatilities on NYSE Composite and Manitex International 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 NYSE Composite with a short position of Manitex International. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Manitex International.
Diversification Opportunities for NYSE Composite and Manitex International
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and Manitex is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Manitex International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manitex International and NYSE Composite 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 NYSE Composite are associated (or correlated) with Manitex International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manitex International has no effect on the direction of NYSE Composite i.e., NYSE Composite and Manitex International go up and down completely randomly.
Pair Corralation between NYSE Composite and Manitex International
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.7 times more return on investment than Manitex International. However, NYSE Composite is 1.7 times more volatile than Manitex International. It trades about 0.13 of its potential returns per unit of risk. Manitex International is currently generating about 0.09 per unit of risk. If you would invest 1,959,424 in NYSE Composite on August 24, 2024 and sell it today you would earn a total of 37,406 from holding NYSE Composite or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
NYSE Composite vs. Manitex International
Performance |
| Timeline |
NYSE Composite and Manitex International Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Manitex International
Pair trading matchups for Manitex International
Pair Trading with NYSE Composite and Manitex International
The main advantage of trading using opposite NYSE Composite and Manitex International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Manitex International 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 Manitex International will offset losses from the drop in Manitex International's long position.| NYSE Composite vs. Awilco Drilling PLC | NYSE Composite vs. AKITA Drilling | NYSE Composite vs. SunOpta | NYSE Composite vs. Delek Drilling |
| Manitex International vs. Astec Industries | Manitex International vs. Hyster Yale Materials Handling | Manitex International vs. Shyft Group | Manitex International vs. Rev Group |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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