Correlation Between Amdocs and ManTech International
Can any of the company-specific risk be diversified away by investing in both Amdocs and ManTech 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 Amdocs and ManTech International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amdocs and ManTech International, you can compare the effects of market volatilities on Amdocs 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 Amdocs with a short position of ManTech International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amdocs and ManTech International.
Diversification Opportunities for Amdocs and ManTech International
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amdocs and ManTech is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Amdocs and ManTech International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ManTech International and Amdocs 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 Amdocs 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 Amdocs i.e., Amdocs and ManTech International go up and down completely randomly.
Pair Corralation between Amdocs and ManTech International
Considering the 90-day investment horizon Amdocs is expected to generate 7.04 times more return on investment than ManTech International. However, Amdocs is 7.04 times more volatile than ManTech International. It trades about 0.01 of its potential returns per unit of risk. ManTech International is currently generating about 0.06 per unit of risk. If you would invest 8,321 in Amdocs on January 20, 2024 and sell it today you would earn a total of 190.00 from holding Amdocs or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 15.79% |
| Values | Daily Returns |
Amdocs vs. ManTech International
Performance |
| Timeline |
| Amdocs |
| ManTech International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Amdocs and ManTech International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amdocs and ManTech International
The main advantage of trading using opposite Amdocs and ManTech International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amdocs position performs unexpectedly, ManTech 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 ManTech International will offset losses from the drop in ManTech International's long position.The idea behind Amdocs and ManTech 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.| ManTech International vs. Kinetik Holdings | ManTech International vs. Guangdong Investment Limited | ManTech International vs. PennantPark Investment | ManTech International vs. Portland General Electric |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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