Correlation Between Manitowoc and Premier Hldg

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

By analyzing existing cross correlation between Manitowoc and Premier Hldg Corp, you can compare the effects of market volatilities on Manitowoc and Premier Hldg 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 Premier Hldg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitowoc and Premier Hldg.

Diversification Opportunities for Manitowoc and Premier Hldg

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Correlation Coefficient

Manitowoc  Premier Hldg

Pay attention - limited upside

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

Pair Corralation between Manitowoc and Premier Hldg

If you would invest  0.01  in Premier Hldg Corp on January 28, 2024 and sell it today you would earn a total of  0.00  from holding Premier Hldg Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Manitowoc  vs.  Premier Hldg Corp

Manitowoc

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Manitowoc 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 basic indicators remain fairly stable which may send shares a bit higher in May 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Premier Hldg Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Premier Hldg Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical indicators, Premier Hldg is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Manitowoc and Premier Hldg

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

The idea behind Manitowoc and Premier Hldg Corp 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.