Correlation Between OLB and Manhattan Associates
Can any of the company-specific risk be diversified away by investing in both OLB and Manhattan Associates 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 OLB and Manhattan Associates into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OLB Group and Manhattan Associates, you can compare the effects of market volatilities on OLB and Manhattan Associates 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 OLB with a short position of Manhattan Associates. Check out your portfolio center. Please also check ongoing floating volatility patterns of OLB and Manhattan Associates.
Diversification Opportunities for OLB and Manhattan Associates
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OLB and Manhattan is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding OLB Group and Manhattan Associates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manhattan Associates and OLB 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 OLB Group are associated (or correlated) with Manhattan Associates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manhattan Associates has no effect on the direction of OLB i.e., OLB and Manhattan Associates go up and down completely randomly.
Pair Corralation between OLB and Manhattan Associates
Considering the 90-day investment horizon OLB Group is expected to under-perform the Manhattan Associates. In addition to that, OLB is 3.95 times more volatile than Manhattan Associates. It trades about -0.01 of its total potential returns per unit of risk. Manhattan Associates is currently generating about 0.07 per unit of volatility. If you would invest 18,550 in Manhattan Associates on August 31, 2024 and sell it today you would earn a total of 9,994 from holding Manhattan Associates or generate 53.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
OLB Group vs. Manhattan Associates
Performance |
| Timeline |
| OLB Group |
| Manhattan Associates |
OLB and Manhattan Associates Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OLB and Manhattan Associates
The main advantage of trading using opposite OLB and Manhattan Associates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OLB position performs unexpectedly, Manhattan Associates 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 Manhattan Associates will offset losses from the drop in Manhattan Associates' long position.The idea behind OLB Group and Manhattan Associates pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Manhattan Associates vs. Blackbaud | Manhattan Associates vs. Bentley Systems | Manhattan Associates vs. Paylocity Holdng | Manhattan Associates vs. ANSYS 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |