Correlation Between Seagate Technology and Mangels Industrial
Can any of the company-specific risk be diversified away by investing in both Seagate Technology and Mangels Industrial 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 Seagate Technology and Mangels Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seagate Technology Holdings and Mangels Industrial SA, you can compare the effects of market volatilities on Seagate Technology and Mangels Industrial 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 Seagate Technology with a short position of Mangels Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seagate Technology and Mangels Industrial.
Diversification Opportunities for Seagate Technology and Mangels Industrial
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Seagate and Mangels is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Seagate Technology Holdings and Mangels Industrial SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mangels Industrial and Seagate Technology 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 Seagate Technology Holdings are associated (or correlated) with Mangels Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mangels Industrial has no effect on the direction of Seagate Technology i.e., Seagate Technology and Mangels Industrial go up and down completely randomly.
Pair Corralation between Seagate Technology and Mangels Industrial
Assuming the 90 days trading horizon Seagate Technology is expected to generate 2.62 times less return on investment than Mangels Industrial. But when comparing it to its historical volatility, Seagate Technology Holdings is 1.6 times less risky than Mangels Industrial. It trades about 0.14 of its potential returns per unit of risk. Mangels Industrial SA is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 695.00 in Mangels Industrial SA on November 5, 2024 and sell it today you would earn a total of 160.00 from holding Mangels Industrial SA or generate 23.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seagate Technology Holdings vs. Mangels Industrial SA
Performance |
| Timeline |
| Seagate Technology |
| Mangels Industrial |
Seagate Technology and Mangels Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seagate Technology and Mangels Industrial
The main advantage of trading using opposite Seagate Technology and Mangels Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seagate Technology position performs unexpectedly, Mangels Industrial 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 Mangels Industrial will offset losses from the drop in Mangels Industrial's long position.| Seagate Technology vs. Metalrgica Riosulense SA | Seagate Technology vs. SSC Technologies Holdings, | Seagate Technology vs. DXC Technology | Seagate Technology vs. Raytheon Technologies |
| Mangels Industrial vs. Inepar SA Indstria | Mangels Industrial vs. Lupatech SA | Mangels Industrial vs. Paranapanema SA | Mangels Industrial vs. Plascar Participaes Industriais |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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