Correlation Between Manaris Corp and CaliberCos

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

By analyzing existing cross correlation between Manaris Corp and CaliberCos Class A, you can compare the effects of market volatilities on Manaris Corp and CaliberCos 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 CaliberCos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manaris Corp and CaliberCos.

Diversification Opportunities for Manaris Corp and CaliberCos

0.0

Correlation Coefficient

Manaris Corp  CaliberCos

Pay attention - limited upside

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

Pair Corralation between Manaris Corp and CaliberCos

If you would invest  54.00  in CaliberCos Class A on October 8, 2024 and sell it today you would earn a total of  20.00  from holding CaliberCos Class A or generate 37.04% return on investment over 90 days.

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

Manaris Corp  vs.  CaliberCos Class A

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 current stock price disturbance, may contribute to short-term losses for the investors.

CaliberCos Class A

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CaliberCos Class A are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, CaliberCos exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Manaris Corp and CaliberCos

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

The idea behind Manaris Corp and CaliberCos Class A 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.