Correlation Between RBC Bearings and Mannatech Incorporated
Can any of the company-specific risk be diversified away by investing in both RBC Bearings 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 RBC Bearings and Mannatech Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RBC Bearings Incorporated and Mannatech Incorporated, you can compare the effects of market volatilities on RBC Bearings 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 RBC Bearings with a short position of Mannatech Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Bearings and Mannatech Incorporated.
Diversification Opportunities for RBC Bearings and Mannatech Incorporated
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between RBC and Mannatech is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding RBC Bearings Incorporated and Mannatech Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mannatech Incorporated and RBC Bearings 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 RBC Bearings Incorporated 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 RBC Bearings i.e., RBC Bearings and Mannatech Incorporated go up and down completely randomly.
Pair Corralation between RBC Bearings and Mannatech Incorporated
Considering the 90-day investment horizon RBC Bearings Incorporated is expected to generate 0.51 times more return on investment than Mannatech Incorporated. However, RBC Bearings Incorporated is 1.97 times less risky than Mannatech Incorporated. It trades about 0.33 of its potential returns per unit of risk. Mannatech Incorporated is currently generating about -0.03 per unit of risk. If you would invest 28,857 in RBC Bearings Incorporated on August 27, 2024 and sell it today you would earn a total of 5,021 from holding RBC Bearings Incorporated or generate 17.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
RBC Bearings Incorporated vs. Mannatech Incorporated
Performance |
| Timeline |
| RBC Bearings |
| Mannatech Incorporated |
RBC Bearings and Mannatech Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RBC Bearings and Mannatech Incorporated
The main advantage of trading using opposite RBC Bearings and Mannatech Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBC Bearings 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.| RBC Bearings vs. Lincoln Electric Holdings | RBC Bearings vs. Kennametal | RBC Bearings vs. Toro Co | RBC Bearings vs. Snap On |
| Mannatech Incorporated vs. Edgewell Personal Care | Mannatech Incorporated vs. Inter Parfums | Mannatech Incorporated vs. Nu Skin Enterprises | Mannatech Incorporated vs. Helen of Troy |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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