Correlation Between Goff Corp and Manhattan
Can any of the company-specific risk be diversified away by investing in both Goff Corp and Manhattan 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 Goff Corp and Manhattan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goff Corp and Manhattan Limited, you can compare the effects of market volatilities on Goff Corp and Manhattan 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 Goff Corp with a short position of Manhattan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goff Corp and Manhattan.
Diversification Opportunities for Goff Corp and Manhattan
Good diversification
The 3 months correlation between Goff and Manhattan is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Goff Corp and Manhattan Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manhattan Limited and Goff Corp 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 Goff Corp are associated (or correlated) with Manhattan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manhattan Limited has no effect on the direction of Goff Corp i.e., Goff Corp and Manhattan go up and down completely randomly.
Pair Corralation between Goff Corp and Manhattan
Given the investment horizon of 90 days Goff Corp is expected to generate 2.42 times less return on investment than Manhattan. But when comparing it to its historical volatility, Goff Corp is 1.31 times less risky than Manhattan. It trades about 0.08 of its potential returns per unit of risk. Manhattan Limited is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 0.19 in Manhattan Limited on November 2, 2024 and sell it today you would earn a total of 0.58 from holding Manhattan Limited or generate 305.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 65.05% |
| Values | Daily Returns |
Goff Corp vs. Manhattan Limited
Performance |
| Timeline |
| Goff Corp |
| Manhattan Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Goff Corp and Manhattan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goff Corp and Manhattan
The main advantage of trading using opposite Goff Corp and Manhattan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goff Corp position performs unexpectedly, Manhattan 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 will offset losses from the drop in Manhattan's long position.| Goff Corp vs. Gemfields Group Limited | Goff Corp vs. Star Royalties | Goff Corp vs. Defiance Silver Corp | Goff Corp vs. Diamond Fields Resources |
| Manhattan vs. EnviroGold Global Limited | Manhattan vs. Gemfields Group Limited | Manhattan vs. Pacific Ridge Exploration | Manhattan vs. Star Royalties |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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