Correlation Between Nu Skin and Mannatech Incorporated

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

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

Diversification Opportunities for Nu Skin and Mannatech Incorporated

-0.41

Correlation Coefficient

Nu Skin  Mannatech Incorporated

Very good diversification

The 3 months correlation between NUS and Mannatech is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Nu Skin Enterprises and Mannatech Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mannatech Incorporated and Nu Skin 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 Nu Skin Enterprises are associated (or correlated) with Mannatech Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mannatech Incorporated has no effect on the direction of Nu Skin i.e., Nu Skin and Mannatech Incorporated go up and down completely randomly.

Pair Corralation between Nu Skin and Mannatech Incorporated

Considering the 90-day investment horizon Nu Skin Enterprises is expected to generate 1.1 times more return on investment than Mannatech Incorporated. However, Nu Skin is 1.1 times more volatile than Mannatech Incorporated. It trades about 0.05 of its potential returns per unit of risk. Mannatech Incorporated is currently generating about -0.16 per unit of risk. If you would invest  663.00  in Nu Skin Enterprises on December 28, 2024 and sell it today you would earn a total of  59.00  from holding Nu Skin Enterprises or generate 8.9% return on investment over 90 days.

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

Nu Skin Enterprises  vs.  Mannatech Incorporated

Nu Skin Enterprises

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nu Skin Enterprises are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Nu Skin unveiled solid returns over the last few months and may actually be approaching a breakup point.

Mannatech Incorporated

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mannatech Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Nu Skin and Mannatech Incorporated

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

The idea behind Nu Skin Enterprises and Mannatech Incorporated 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.