Correlation Between EPlus and Manhattan Associates

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

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

Diversification Opportunities for EPlus and Manhattan Associates

0.06

Correlation Coefficient

EPlus  Manhattan Associates

Significant diversification

The 3 months correlation between EPlus and Manhattan is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding ePlus inc and Manhattan Associates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manhattan Associates and EPlus 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 ePlus inc are associated (or correlated) with Manhattan Associates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manhattan Associates has no effect on the direction of EPlus i.e., EPlus and Manhattan Associates go up and down completely randomly.

Pair Corralation between EPlus and Manhattan Associates

Given the investment horizon of 90 days ePlus inc is expected to under-perform the Manhattan Associates. But the stock apears to be less risky and, when comparing its historical volatility, ePlus inc is 1.07 times less risky than Manhattan Associates. The stock trades about 0.0 of its potential returns per unit of risk. The Manhattan Associates is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  18,283  in Manhattan Associates on May 6, 2025 and sell it today you would earn a total of  3,183  from holding Manhattan Associates or generate 17.41% return on investment over 90 days.

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

ePlus inc  vs.  Manhattan Associates

ePlus inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days ePlus inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, EPlus is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

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.

Pair Trading with EPlus and Manhattan Associates

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

The idea behind ePlus inc and Manhattan Associates 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.