Correlation Between Manaris Corp and Burnham Holdings

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

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

Diversification Opportunities for Manaris Corp and Burnham Holdings

0.0

Correlation Coefficient

Manaris Corp  Burnham Holdings

Pay attention - limited upside

The 3 months correlation between Manaris and Burnham is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Manaris Corp and Burnham Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burnham Holdings and Manaris 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 Manaris Corp are associated (or correlated) with Burnham Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burnham Holdings has no effect on the direction of Manaris Corp i.e., Manaris Corp and Burnham Holdings go up and down completely randomly.

Pair Corralation between Manaris Corp and Burnham Holdings

If you would invest  1,224  in Burnham Holdings on September 27, 2024 and sell it today you would earn a total of  171.00  from holding Burnham Holdings or generate 13.97% return on investment over 90 days.

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

Manaris Corp  vs.  Burnham Holdings

Manaris Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Manaris Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Manaris Corp is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Burnham Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Burnham Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, Burnham Holdings is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Manaris Corp and Burnham Holdings

The main advantage of trading using opposite Manaris Corp and Burnham Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manaris Corp position performs unexpectedly, Burnham Holdings 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 Burnham Holdings will offset losses from the drop in Burnham Holdings' long position.

The idea behind Manaris Corp and Burnham Holdings 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.

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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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .