Correlation Between Manitowoc and Manitex International

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

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

Diversification Opportunities for Manitowoc and Manitex International

0.0

Correlation Coefficient

Manitowoc  Manitex International

Pay attention - limited upside

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

Pair Corralation between Manitowoc and Manitex International

If you would invest  877.00  in Manitowoc on December 30, 2024 and sell it today you would earn a total of  12.00  from holding Manitowoc or generate 1.37% return on investment over 90 days.

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

Manitowoc  vs.  Manitex International

Manitowoc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Manitowoc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Manitowoc is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Manitex International

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Manitowoc and Manitex International

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

The idea behind Manitowoc and Manitex International 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.

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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.