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

-0.47

Correlation Coefficient

Mannatech Incorporated  Massimo Group

Very good diversification

The 3 months correlation between Mannatech and Massimo is -0.47. 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 generate 1.34 times more return on investment than Massimo Group. However, Mannatech Incorporated is 1.34 times more volatile than Massimo Group Common. It trades about 0.05 of its potential returns per unit of risk. Massimo Group Common is currently generating about 0.03 per unit of risk. If you would invest  1,050  in Mannatech Incorporated on December 4, 2024 and sell it today you would earn a total of  89.00  from holding Mannatech Incorporated or generate 8.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Mannatech Incorporated  vs.  Massimo Group Common

Mannatech Incorporated

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Mannatech Incorporated are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady technical and fundamental indicators, Mannatech Incorporated showed solid returns over the last few months and may actually be approaching a breakup point.

Massimo Group Common

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Massimo Group Common are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady primary indicators, Massimo Group may actually be approaching a critical reversion point that can send shares even higher in April 2025.

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.

The idea behind Mannatech Incorporated and Massimo Group Common 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.