Correlation Between Thayer Ventures and Manhattan Associates
Can any of the company-specific risk be diversified away by investing in both Thayer Ventures 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 Thayer Ventures and Manhattan Associates into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thayer Ventures Acquisition and Manhattan Associates, you can compare the effects of market volatilities on Thayer Ventures 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 Thayer Ventures with a short position of Manhattan Associates. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thayer Ventures and Manhattan Associates.
Diversification Opportunities for Thayer Ventures and Manhattan Associates
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thayer and Manhattan is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Thayer Ventures Acquisition and Manhattan Associates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manhattan Associates and Thayer Ventures 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 Thayer Ventures Acquisition 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 Thayer Ventures i.e., Thayer Ventures and Manhattan Associates go up and down completely randomly.
Pair Corralation between Thayer Ventures and Manhattan Associates
Assuming the 90 days horizon Thayer Ventures Acquisition is expected to generate 13.5 times more return on investment than Manhattan Associates. However, Thayer Ventures is 13.5 times more volatile than Manhattan Associates. It trades about 0.08 of its potential returns per unit of risk. Manhattan Associates is currently generating about 0.09 per unit of risk. If you would invest 1.30 in Thayer Ventures Acquisition on September 14, 2024 and sell it today you would lose (0.30) from holding Thayer Ventures Acquisition or give up 23.08% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Thayer Ventures Acquisition vs. Manhattan Associates
Performance |
Timeline |
Thayer Ventures Acqu |
Manhattan Associates |
Thayer Ventures and Manhattan Associates Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Thayer Ventures and Manhattan Associates
The main advantage of trading using opposite Thayer Ventures and Manhattan Associates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thayer Ventures 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.Thayer Ventures vs. Inspirato | Thayer Ventures vs. Anghami De | Thayer Ventures vs. Cepton Inc | Thayer Ventures vs. Cepton Inc |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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