Correlation Between Key Energy and ManifestSeven Holdings

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

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

Diversification Opportunities for Key Energy and ManifestSeven Holdings

0.0

Correlation Coefficient

Key Energy  ManifestSeven Holdings

Pay attention - limited upside

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

Pair Corralation between Key Energy and ManifestSeven Holdings

If you would invest  0.00  in ManifestSeven Holdings on October 10, 2024 and sell it today you would earn a total of  0.00  from holding ManifestSeven Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Key Energy Services  vs.  ManifestSeven Holdings

Key Energy Services

Risk-Adjusted Performance

0 of 100

Very Weak

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

ManifestSeven Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ManifestSeven Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ManifestSeven Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Key Energy and ManifestSeven Holdings

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

The idea behind Key Energy Services and ManifestSeven 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.