Correlation Between Bellring Brands and Mannatech Incorporated

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

By analyzing existing cross correlation between Bellring Brands LLC and Mannatech Incorporated, you can compare the effects of market volatilities on Bellring Brands and Mannatech Incorporated 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 Bellring Brands with a short position of Mannatech Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellring Brands and Mannatech Incorporated.

Diversification Opportunities for Bellring Brands and Mannatech Incorporated

0.68

Correlation Coefficient

Bellring Brands  Mannatech Incorporated

Poor diversification

The 3 months correlation between Bellring and Mannatech is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bellring Brands LLC and Mannatech Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mannatech Incorporated and Bellring Brands 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 Bellring Brands LLC are associated (or correlated) with Mannatech Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mannatech Incorporated has no effect on the direction of Bellring Brands i.e., Bellring Brands and Mannatech Incorporated go up and down completely randomly.

Pair Corralation between Bellring Brands and Mannatech Incorporated

Given the investment horizon of 90 days Bellring Brands LLC is expected to under-perform the Mannatech Incorporated. But the stock apears to be less risky and, when comparing its historical volatility, Bellring Brands LLC is 2.6 times less risky than Mannatech Incorporated. The stock trades about -0.11 of its potential returns per unit of risk. The Mannatech Incorporated is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  1,000.00  in Mannatech Incorporated on May 7, 2025 and sell it today you would lose (156.00) from holding Mannatech Incorporated or give up 15.6% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.72%
Values	Daily Returns

Bellring Brands LLC  vs.  Mannatech Incorporated

Bellring Brands LLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bellring Brands LLC has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Mannatech Incorporated

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mannatech Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Bellring Brands and Mannatech Incorporated

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

The idea behind Bellring Brands LLC and Mannatech Incorporated 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.