Pair Correlation Between Microsoft and ManTech International

This module allows you to analyze existing cross correlation between Microsoft Corporation and ManTech International Corporation. You can compare the effects of market volatilities on Microsoft and ManTech 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 Microsoft with a short position of ManTech International. See also your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and ManTech International.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Microsoft Corp.  vs   ManTech International Corp.
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Microsoft is expected to generate 1.55 times less return on investment than ManTech International. But when comparing it to its historical volatility, Microsoft Corporation is 1.66 times less risky than ManTech International. It trades about 0.43 of its potential returns per unit of risk. ManTech International Corporation is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest  4,220  in ManTech International Corporation on September 21, 2017 and sell it today you would earn a total of  411  from holding ManTech International Corporation or generate 9.74% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Microsoft and ManTech International
0.82

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very poor diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Microsoft

  
29 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Microsoft Corporation are ranked lower than 29 (%) of all global equities and portfolios over the last 30 days.

ManTech International

  
27 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in ManTech International Corporation are ranked lower than 27 (%) of all global equities and portfolios over the last 30 days.