Correlation Between ManTech International and MIND CTI

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Can any of the company-specific risk be diversified away by investing in both ManTech International and MIND CTI 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 ManTech International and MIND CTI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ManTech International and MIND CTI, you can compare the effects of market volatilities on ManTech International and MIND CTI 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 ManTech International with a short position of MIND CTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of ManTech International and MIND CTI.

Diversification Opportunities for ManTech International and MIND CTI

0.8
  Correlation Coefficient

Very poor diversification

The 3 months correlation between ManTech and MIND is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding ManTech International and MIND CTI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIND CTI and ManTech International 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 ManTech International are associated (or correlated) with MIND CTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIND CTI has no effect on the direction of ManTech International i.e., ManTech International and MIND CTI go up and down completely randomly.

Pair Corralation between ManTech International and MIND CTI

If you would invest  174.00  in MIND CTI on December 30, 2023 and sell it today you would earn a total of  16.00  from holding MIND CTI or generate 9.2% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy0.4%
ValuesDaily Returns

ManTech International  vs.  MIND CTI

 Performance 
       Timeline  
ManTech International 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days ManTech International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, ManTech International is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.
MIND CTI 

Risk-Adjusted Performance

8 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in MIND CTI are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal fundamental indicators, MIND CTI may actually be approaching a critical reversion point that can send shares even higher in April 2024.

ManTech International and MIND CTI Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ManTech International and MIND CTI

The main advantage of trading using opposite ManTech International and MIND CTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ManTech International position performs unexpectedly, MIND CTI 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 MIND CTI will offset losses from the drop in MIND CTI's long position.
The idea behind ManTech International and MIND CTI 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

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