Correlation Between Shyft and Manitowoc
Can any of the company-specific risk be diversified away by investing in both Shyft and Manitowoc 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 Shyft and Manitowoc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shyft Group and Manitowoc, you can compare the effects of market volatilities on Shyft and Manitowoc 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 Shyft with a short position of Manitowoc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shyft and Manitowoc.
Diversification Opportunities for Shyft and Manitowoc
Poor diversification
The 3 months correlation between Shyft and Manitowoc is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shyft Group and Manitowoc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manitowoc and Shyft 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 Shyft Group are associated (or correlated) with Manitowoc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manitowoc has no effect on the direction of Shyft i.e., Shyft and Manitowoc go up and down completely randomly.
Pair Corralation between Shyft and Manitowoc
Given the investment horizon of 90 days Shyft Group is expected to under-perform the Manitowoc. In addition to that, Shyft is 1.13 times more volatile than Manitowoc. It trades about -0.01 of its total potential returns per unit of risk. Manitowoc is currently generating about 0.02 per unit of volatility. If you would invest 948.00 in Manitowoc on August 27, 2024 and sell it today you would earn a total of 133.00 from holding Manitowoc or generate 14.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shyft Group vs. Manitowoc
Performance |
| Timeline |
| Shyft Group |
| Manitowoc |
Shyft and Manitowoc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shyft and Manitowoc
The main advantage of trading using opposite Shyft and Manitowoc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shyft position performs unexpectedly, Manitowoc 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 Manitowoc will offset losses from the drop in Manitowoc's long position.| Shyft vs. Astec Industries | Shyft vs. Hyster Yale Materials Handling | Shyft vs. Manitex International | Shyft vs. Rev Group |
| Manitowoc vs. Oshkosh | Manitowoc vs. Alamo Group | Manitowoc vs. Wabash National | Manitowoc vs. Hyster Yale Materials Handling |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |