Correlation Between Gemfields Group and Manhattan
Can any of the company-specific risk be diversified away by investing in both Gemfields Group and Manhattan 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 Gemfields Group and Manhattan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gemfields Group Limited and Manhattan Limited, you can compare the effects of market volatilities on Gemfields Group and Manhattan 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 Gemfields Group with a short position of Manhattan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemfields Group and Manhattan.
Diversification Opportunities for Gemfields Group and Manhattan
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gemfields and Manhattan is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Gemfields Group Limited and Manhattan Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manhattan Limited and Gemfields Group 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 Gemfields Group Limited are associated (or correlated) with Manhattan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manhattan Limited has no effect on the direction of Gemfields Group i.e., Gemfields Group and Manhattan go up and down completely randomly.
Pair Corralation between Gemfields Group and Manhattan
If you would invest 0.77 in Manhattan Limited on October 22, 2024 and sell it today you would earn a total of 0.00 from holding Manhattan Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Gemfields Group Limited vs. Manhattan Limited
Performance |
| Timeline |
| Gemfields Group |
| Manhattan Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Gemfields Group and Manhattan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gemfields Group and Manhattan
The main advantage of trading using opposite Gemfields Group and Manhattan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gemfields Group position performs unexpectedly, Manhattan 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 will offset losses from the drop in Manhattan's long position.| Gemfields Group vs. Star Royalties | Gemfields Group vs. Defiance Silver Corp | Gemfields Group vs. Diamond Fields Resources | Gemfields Group vs. GoGold Resources |
| Manhattan vs. EnviroGold Global Limited | Manhattan vs. Gemfields Group Limited | Manhattan vs. Pacific Ridge Exploration | Manhattan vs. Star Royalties |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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