Correlation Between Man Group and Relx PLC

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

By analyzing existing cross correlation between Man Group PLC and Relx PLC, you can compare the effects of market volatilities on Man Group and Relx PLC 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 Man Group with a short position of Relx PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Man Group and Relx PLC.

Diversification Opportunities for Man Group and Relx PLC

-0.52

Correlation Coefficient

Man Group  Relx PLC

Excellent diversification

The 3 months correlation between Man and Relx is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Man Group PLC and Relx PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Relx PLC and Man Group 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 Man Group PLC are associated (or correlated) with Relx PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Relx PLC has no effect on the direction of Man Group i.e., Man Group and Relx PLC go up and down completely randomly.

Pair Corralation between Man Group and Relx PLC

Assuming the 90 days trading horizon Man Group PLC is expected to generate 1.32 times more return on investment than Relx PLC. However, Man Group is 1.32 times more volatile than Relx PLC. It trades about 0.3 of its potential returns per unit of risk. Relx PLC is currently generating about -0.16 per unit of risk. If you would invest  15,600  in Man Group PLC on September 12, 2025 and sell it today you would earn a total of  5,720  from holding Man Group PLC or generate 36.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Man Group PLC  vs.  Relx PLC

Man Group PLC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Man Group PLC are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Man Group exhibited solid returns over the last few months and may actually be approaching a breakup point.

Relx PLC

Risk-Adjusted Performance

Weakest

Over the last 90 days Relx PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in January 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Man Group and Relx PLC

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

The idea behind Man Group PLC and Relx PLC 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.