Correlation Between STAG Industrial, and Mangels Industrial
Can any of the company-specific risk be diversified away by investing in both STAG Industrial, 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 STAG Industrial, and Mangels Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STAG Industrial, and Mangels Industrial SA, you can compare the effects of market volatilities on STAG Industrial, 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 STAG Industrial, with a short position of Mangels Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of STAG Industrial, and Mangels Industrial.
Diversification Opportunities for STAG Industrial, and Mangels Industrial
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between STAG and Mangels is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding STAG Industrial, and Mangels Industrial SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mangels Industrial and STAG Industrial, 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 STAG Industrial, 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 STAG Industrial, i.e., STAG Industrial, and Mangels Industrial go up and down completely randomly.
Pair Corralation between STAG Industrial, and Mangels Industrial
Assuming the 90 days trading horizon STAG Industrial, is expected to under-perform the Mangels Industrial. But the stock apears to be less risky and, when comparing its historical volatility, STAG Industrial, is 3.14 times less risky than Mangels Industrial. The stock trades about -0.1 of its potential returns per unit of risk. The Mangels Industrial SA is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 630.00 in Mangels Industrial SA on October 12, 2024 and sell it today you would earn a total of 69.00 from holding Mangels Industrial SA or generate 10.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STAG Industrial, vs. Mangels Industrial SA
Performance |
| Timeline |
| STAG Industrial, |
| Mangels Industrial |
STAG Industrial, and Mangels Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STAG Industrial, and Mangels Industrial
The main advantage of trading using opposite STAG Industrial, and Mangels Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STAG Industrial, 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.| STAG Industrial, vs. Broadridge Financial Solutions, | STAG Industrial, vs. Zoom Video Communications | STAG Industrial, vs. Eastman Chemical | STAG Industrial, vs. Tyson Foods |
| Mangels Industrial vs. Inepar SA Indstria | Mangels Industrial vs. Lupatech SA | Mangels Industrial vs. Paranapanema SA | Mangels Industrial vs. Rossi Residencial SA |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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