Correlation Between VERB TECHNOLOGY and Manhattan Associates
Can any of the company-specific risk be diversified away by investing in both VERB TECHNOLOGY and Manhattan Associates 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 VERB TECHNOLOGY and Manhattan Associates into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VERB TECHNOLOGY PANY and Manhattan Associates, you can compare the effects of market volatilities on VERB TECHNOLOGY and Manhattan Associates 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 VERB TECHNOLOGY with a short position of Manhattan Associates. Check out your portfolio center. Please also check ongoing floating volatility patterns of VERB TECHNOLOGY and Manhattan Associates.
Diversification Opportunities for VERB TECHNOLOGY and Manhattan Associates
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between VERB and Manhattan is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding VERB TECHNOLOGY PANY and Manhattan Associates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manhattan Associates and VERB 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 VERB TECHNOLOGY PANY are associated (or correlated) with Manhattan Associates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manhattan Associates has no effect on the direction of VERB TECHNOLOGY i.e., VERB TECHNOLOGY and Manhattan Associates go up and down completely randomly.
Pair Corralation between VERB TECHNOLOGY and Manhattan Associates
Given the investment horizon of 90 days VERB TECHNOLOGY PANY is expected to generate 12.14 times more return on investment than Manhattan Associates. However, VERB TECHNOLOGY is 12.14 times more volatile than Manhattan Associates. It trades about 0.01 of its potential returns per unit of risk. Manhattan Associates is currently generating about 0.07 per unit of risk. If you would invest 27,600 in VERB TECHNOLOGY PANY on August 31, 2024 and sell it today you would lose (26,658) from holding VERB TECHNOLOGY PANY or give up 96.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VERB TECHNOLOGY PANY vs. Manhattan Associates
Performance |
| Timeline |
| VERB TECHNOLOGY PANY |
| Manhattan Associates |
VERB TECHNOLOGY and Manhattan Associates Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VERB TECHNOLOGY and Manhattan Associates
The main advantage of trading using opposite VERB TECHNOLOGY and Manhattan Associates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VERB TECHNOLOGY position performs unexpectedly, Manhattan Associates 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 Manhattan Associates will offset losses from the drop in Manhattan Associates' long position.| VERB TECHNOLOGY vs. Trust Stamp | VERB TECHNOLOGY vs. Freight Technologies | VERB TECHNOLOGY vs. Versus Systems | VERB TECHNOLOGY vs. Auddia Inc |
| Manhattan Associates vs. Blackbaud | Manhattan Associates vs. Bentley Systems | Manhattan Associates vs. Paylocity Holdng | Manhattan Associates vs. ANSYS Inc |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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