Correlation Between ASGN and Manhattan Associates

Can any of the company-specific risk be diversified away by investing in both ASGN 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 ASGN and Manhattan Associates into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ASGN Inc and Manhattan Associates, you can compare the effects of market volatilities on ASGN 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 ASGN with a short position of Manhattan Associates. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASGN and Manhattan Associates.

Diversification Opportunities for ASGN and Manhattan Associates

0.17

Correlation Coefficient

ASGN  Manhattan Associates

Average diversification

The 3 months correlation between ASGN and Manhattan is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding ASGN Inc and Manhattan Associates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manhattan Associates and ASGN 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 ASGN Inc 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 ASGN i.e., ASGN and Manhattan Associates go up and down completely randomly.

Pair Corralation between ASGN and Manhattan Associates

Given the investment horizon of 90 days ASGN Inc is expected to under-perform the Manhattan Associates. In addition to that, ASGN is 1.04 times more volatile than Manhattan Associates. It trades about -0.02 of its total potential returns per unit of risk. Manhattan Associates is currently generating about 0.03 per unit of volatility. If you would invest  26,144  in Manhattan Associates on October 20, 2024 and sell it today you would earn a total of  1,199  from holding Manhattan Associates or generate 4.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ASGN Inc  vs.  Manhattan Associates

ASGN Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ASGN Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, ASGN is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Manhattan Associates

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Manhattan Associates has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with ASGN and Manhattan Associates

The main advantage of trading using opposite ASGN and Manhattan Associates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASGN 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.

The idea behind ASGN Inc and Manhattan Associates pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.