Correlation Between Manhattan Associates and E2open Parent

Can any of the company-specific risk be diversified away by investing in both Manhattan Associates and E2open Parent 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 Manhattan Associates and E2open Parent into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Manhattan Associates and E2open Parent Holdings, you can compare the effects of market volatilities on Manhattan Associates and E2open Parent 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 Manhattan Associates with a short position of E2open Parent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manhattan Associates and E2open Parent.

Diversification Opportunities for Manhattan Associates and E2open Parent

0.58

Correlation Coefficient

Manhattan Associates  E2open Parent

Very weak diversification

The 3 months correlation between Manhattan and E2open is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Manhattan Associates and E2open Parent Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E2open Parent Holdings and Manhattan Associates 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 Manhattan Associates are associated (or correlated) with E2open Parent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E2open Parent Holdings has no effect on the direction of Manhattan Associates i.e., Manhattan Associates and E2open Parent go up and down completely randomly.

Pair Corralation between Manhattan Associates and E2open Parent

Given the investment horizon of 90 days Manhattan Associates is expected to generate 2.51 times less return on investment than E2open Parent. But when comparing it to its historical volatility, Manhattan Associates is 1.89 times less risky than E2open Parent. It trades about 0.14 of its potential returns per unit of risk. E2open Parent Holdings is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  226.00  in E2open Parent Holdings on May 5, 2025 and sell it today you would earn a total of  104.00  from holding E2open Parent Holdings or generate 46.02% return on investment over 90 days.

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

Manhattan Associates  vs.  E2open Parent Holdings

Manhattan Associates

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Manhattan Associates are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Manhattan Associates demonstrated solid returns over the last few months and may actually be approaching a breakup point.

E2open Parent Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in E2open Parent Holdings are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, E2open Parent displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Manhattan Associates and E2open Parent

The main advantage of trading using opposite Manhattan Associates and E2open Parent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manhattan Associates position performs unexpectedly, E2open Parent 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 E2open Parent will offset losses from the drop in E2open Parent's long position.

The idea behind Manhattan Associates and E2open Parent Holdings 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.