Correlation Between Manhattan and Alexanders

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

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

Diversification Opportunities for Manhattan and Alexanders

-0.68

Correlation Coefficient

Manhattan  Alexanders

Excellent diversification

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

Pair Corralation between Manhattan and Alexanders

Assuming the 90 days horizon Manhattan Limited is expected to generate 30.2 times more return on investment than Alexanders. However, Manhattan is 30.2 times more volatile than Alexanders. It trades about 0.16 of its potential returns per unit of risk. Alexanders is currently generating about -0.06 per unit of risk. If you would invest  2.00  in Manhattan Limited on September 18, 2025 and sell it today you would earn a total of  1.08  from holding Manhattan Limited or generate 54.0% return on investment over 90 days.

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

Manhattan Limited  vs.  Alexanders

Manhattan Limited

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Manhattan Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Manhattan reported solid returns over the last few months and may actually be approaching a breakup point.

Alexanders

Risk-Adjusted Performance

Weakest

Over the last 90 days Alexanders has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Alexanders is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Manhattan and Alexanders

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

The idea behind Manhattan Limited and Alexanders 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.