Correlation Between Man Infraconstructio and Radiant Cash

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

By analyzing existing cross correlation between Man Infraconstruction Limited and Radiant Cash Management, you can compare the effects of market volatilities on Man Infraconstructio and Radiant Cash 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 Infraconstructio with a short position of Radiant Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Man Infraconstructio and Radiant Cash.

Diversification Opportunities for Man Infraconstructio and Radiant Cash

-0.34

Correlation Coefficient

Man Infraconstructio  Radiant Cash

Very good diversification

The 3 months correlation between Man and Radiant is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Man Infraconstruction Limited and Radiant Cash Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radiant Cash Management and Man Infraconstructio 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 Infraconstruction Limited are associated (or correlated) with Radiant Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radiant Cash Management has no effect on the direction of Man Infraconstructio i.e., Man Infraconstructio and Radiant Cash go up and down completely randomly.

Pair Corralation between Man Infraconstructio and Radiant Cash

Assuming the 90 days trading horizon Man Infraconstruction Limited is expected to generate 1.06 times more return on investment than Radiant Cash. However, Man Infraconstructio is 1.06 times more volatile than Radiant Cash Management. It trades about 0.1 of its potential returns per unit of risk. Radiant Cash Management is currently generating about -0.11 per unit of risk. If you would invest  16,355  in Man Infraconstruction Limited on April 23, 2025 and sell it today you would earn a total of  2,171  from holding Man Infraconstruction Limited or generate 13.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Man Infraconstruction Limited  vs.  Radiant Cash Management

Man Infraconstruction

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Man Infraconstruction Limited are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal technical and fundamental indicators, Man Infraconstructio reported solid returns over the last few months and may actually be approaching a breakup point.

Radiant Cash Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Radiant Cash Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Man Infraconstructio and Radiant Cash

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

The idea behind Man Infraconstruction Limited and Radiant Cash Management 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.