Correlation Between Manhattan Associates and Model N

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

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

Diversification Opportunities for Manhattan Associates and Model N

0.0

Correlation Coefficient

Manhattan Associates  Model N

Pay attention - limited upside

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

Pair Corralation between Manhattan Associates and Model N

If you would invest (100.00) in Model N on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Model N or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Manhattan Associates  vs.  Model N

Manhattan Associates

Risk-Adjusted Performance

Very Weak

Over the last 90 days Manhattan Associates has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Model N

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Manhattan Associates and Model N

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

The idea behind Manhattan Associates and Model N 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.