Correlation Between Mannatech Incorporated and Synergy CHC

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

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

Diversification Opportunities for Mannatech Incorporated and Synergy CHC

-0.75

Correlation Coefficient

Mannatech Incorporated  Synergy CHC

Pay attention - limited upside

The 3 months correlation between Mannatech and Synergy is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Mannatech Incorporated and Synergy CHC Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synergy CHC Corp and Mannatech Incorporated 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 Mannatech Incorporated are associated (or correlated) with Synergy CHC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synergy CHC Corp has no effect on the direction of Mannatech Incorporated i.e., Mannatech Incorporated and Synergy CHC go up and down completely randomly.

Pair Corralation between Mannatech Incorporated and Synergy CHC

Given the investment horizon of 90 days Mannatech Incorporated is expected to under-perform the Synergy CHC. But the stock apears to be less risky and, when comparing its historical volatility, Mannatech Incorporated is 1.15 times less risky than Synergy CHC. The stock trades about -0.03 of its potential returns per unit of risk. The Synergy CHC Corp is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  206.00  in Synergy CHC Corp on May 4, 2025 and sell it today you would earn a total of  130.00  from holding Synergy CHC Corp or generate 63.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

Mannatech Incorporated  vs.  Synergy CHC Corp

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.

Synergy CHC Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Synergy CHC Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Synergy CHC reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mannatech Incorporated and Synergy CHC

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

The idea behind Mannatech Incorporated and Synergy CHC Corp 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.