Correlation Between Titan International and Manitex International
Can any of the company-specific risk be diversified away by investing in both Titan International and Manitex International 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 Titan International and Manitex International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Titan International and Manitex International, you can compare the effects of market volatilities on Titan International and Manitex International 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 Titan International with a short position of Manitex International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan International and Manitex International.
Diversification Opportunities for Titan International and Manitex International
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Titan and Manitex is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Titan International and Manitex International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manitex International and Titan International 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 Titan International are associated (or correlated) with Manitex International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manitex International has no effect on the direction of Titan International i.e., Titan International and Manitex International go up and down completely randomly.
Pair Corralation between Titan International and Manitex International
Considering the 90-day investment horizon Titan International is expected to generate 15.01 times more return on investment than Manitex International. However, Titan International is 15.01 times more volatile than Manitex International. It trades about 0.11 of its potential returns per unit of risk. Manitex International is currently generating about 0.12 per unit of risk. If you would invest 679.00 in Titan International on November 1, 2024 and sell it today you would earn a total of 200.00 from holding Titan International or generate 29.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 70.0% |
| Values | Daily Returns |
Titan International vs. Manitex International
Performance |
| Timeline |
| Titan International |
| Manitex International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Titan International and Manitex International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Titan International and Manitex International
The main advantage of trading using opposite Titan International and Manitex International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan International position performs unexpectedly, Manitex International 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 Manitex International will offset losses from the drop in Manitex International's long position.| Titan International vs. Shyft Group | Titan International vs. Manitowoc | Titan International vs. Oshkosh | Titan International vs. Terex |
| Manitex International vs. Astec Industries | Manitex International vs. Hyster Yale Materials Handling | Manitex International vs. Shyft Group | Manitex International vs. Rev Group |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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