Correlation Between Mannatech Incorporated and Massimo Group
Can any of the company-specific risk be diversified away by investing in both Mannatech Incorporated and Massimo Group 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 Mannatech Incorporated and Massimo Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mannatech Incorporated and Massimo Group Common, you can compare the effects of market volatilities on Mannatech Incorporated and Massimo Group 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 Mannatech Incorporated with a short position of Massimo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mannatech Incorporated and Massimo Group.
Diversification Opportunities for Mannatech Incorporated and Massimo Group
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mannatech and Massimo is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Mannatech Incorporated and Massimo Group Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massimo Group Common and Mannatech Incorporated 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 Mannatech Incorporated are associated (or correlated) with Massimo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massimo Group Common has no effect on the direction of Mannatech Incorporated i.e., Mannatech Incorporated and Massimo Group go up and down completely randomly.
Pair Corralation between Mannatech Incorporated and Massimo Group
Given the investment horizon of 90 days Mannatech Incorporated is expected to under-perform the Massimo Group. But the stock apears to be less risky and, when comparing its historical volatility, Mannatech Incorporated is 1.02 times less risky than Massimo Group. The stock trades about -0.14 of its potential returns per unit of risk. The Massimo Group Common is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 245.00 in Massimo Group Common on December 29, 2024 and sell it today you would earn a total of 21.00 from holding Massimo Group Common or generate 8.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Mannatech Incorporated vs. Massimo Group Common
Performance |
Timeline |
Mannatech Incorporated |
Massimo Group Common |
Mannatech Incorporated and Massimo Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mannatech Incorporated and Massimo Group
The main advantage of trading using opposite Mannatech Incorporated and Massimo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mannatech Incorporated position performs unexpectedly, Massimo Group 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 Massimo Group will offset losses from the drop in Massimo Group's long position.Mannatech Incorporated vs. Edgewell Personal Care | Mannatech Incorporated vs. Inter Parfums | Mannatech Incorporated vs. Nu Skin Enterprises | Mannatech Incorporated vs. Helen of Troy |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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