Correlation Between Talanx AG and Man Wah
Can any of the company-specific risk be diversified away by investing in both Talanx AG and Man Wah 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 Talanx AG and Man Wah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Talanx AG and Man Wah Holdings, you can compare the effects of market volatilities on Talanx AG and Man Wah 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 Talanx AG with a short position of Man Wah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Talanx AG and Man Wah.
Diversification Opportunities for Talanx AG and Man Wah
Weak diversification
The 3 months correlation between Talanx and Man is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Talanx AG and Man Wah Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Man Wah Holdings and Talanx AG 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 Talanx AG are associated (or correlated) with Man Wah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Man Wah Holdings has no effect on the direction of Talanx AG i.e., Talanx AG and Man Wah go up and down completely randomly.
Pair Corralation between Talanx AG and Man Wah
Assuming the 90 days horizon Talanx AG is expected to generate 0.42 times more return on investment than Man Wah. However, Talanx AG is 2.37 times less risky than Man Wah. It trades about 0.1 of its potential returns per unit of risk. Man Wah Holdings is currently generating about -0.03 per unit of risk. If you would invest 8,370 in Talanx AG on October 15, 2024 and sell it today you would earn a total of 140.00 from holding Talanx AG or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Talanx AG vs. Man Wah Holdings
Performance |
| Timeline |
| Talanx AG |
| Man Wah Holdings |
Talanx AG and Man Wah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Talanx AG and Man Wah
The main advantage of trading using opposite Talanx AG and Man Wah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Talanx AG position performs unexpectedly, Man Wah 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 Man Wah will offset losses from the drop in Man Wah's long position.| Talanx AG vs. Mitsubishi Materials | Talanx AG vs. WIMFARM SA EO | Talanx AG vs. APPLIED MATERIALS | Talanx AG vs. Federal Agricultural Mortgage |
| Man Wah vs. SK TELECOM TDADR | Man Wah vs. Zoom Video Communications | Man Wah vs. INTERSHOP Communications Aktiengesellschaft | Man Wah vs. COMBA TELECOM SYST |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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