Correlation Between Manaris Corp and All American

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

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

Diversification Opportunities for Manaris Corp and All American

0.0

Correlation Coefficient

Manaris Corp  All American

Pay attention - limited upside

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

Pair Corralation between Manaris Corp and All American

Given the investment horizon of 90 days Manaris Corp is expected to generate 2.89 times more return on investment than All American. However, Manaris Corp is 2.89 times more volatile than All American Gld. It trades about 0.04 of its potential returns per unit of risk. All American Gld is currently generating about 0.08 per unit of risk. If you would invest  0.01  in Manaris Corp on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Manaris Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Manaris Corp  vs.  All American Gld

Manaris Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

All American Gld

Risk-Adjusted Performance

4 of 100

Insignificant

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

Pair Trading with Manaris Corp and All American

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

The idea behind Manaris Corp and All American Gld 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.