Correlation Between Gamma Communications and Manhattan Bridge
Can any of the company-specific risk be diversified away by investing in both Gamma Communications and Manhattan Bridge 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 Gamma Communications and Manhattan Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamma Communications plc and Manhattan Bridge Capital, you can compare the effects of market volatilities on Gamma Communications and Manhattan Bridge 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 Gamma Communications with a short position of Manhattan Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamma Communications and Manhattan Bridge.
Diversification Opportunities for Gamma Communications and Manhattan Bridge
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gamma and Manhattan is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Gamma Communications plc and Manhattan Bridge Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manhattan Bridge Capital and Gamma Communications 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 Gamma Communications plc are associated (or correlated) with Manhattan Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manhattan Bridge Capital has no effect on the direction of Gamma Communications i.e., Gamma Communications and Manhattan Bridge go up and down completely randomly.
Pair Corralation between Gamma Communications and Manhattan Bridge
Assuming the 90 days horizon Gamma Communications plc is expected to generate 0.07 times more return on investment than Manhattan Bridge. However, Gamma Communications plc is 14.68 times less risky than Manhattan Bridge. It trades about 0.12 of its potential returns per unit of risk. Manhattan Bridge Capital is currently generating about -0.11 per unit of risk. If you would invest 1,304 in Gamma Communications plc on September 8, 2025 and sell it today you would earn a total of 10.00 from holding Gamma Communications plc or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamma Communications plc vs. Manhattan Bridge Capital
Performance |
| Timeline |
| Gamma Communications plc |
| Manhattan Bridge Capital |
Gamma Communications and Manhattan Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamma Communications and Manhattan Bridge
The main advantage of trading using opposite Gamma Communications and Manhattan Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamma Communications position performs unexpectedly, Manhattan Bridge 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 Bridge will offset losses from the drop in Manhattan Bridge's long position.| Gamma Communications vs. ATT Inc | Gamma Communications vs. Verizon Communications | Gamma Communications vs. Deutsche Telekom AG | Gamma Communications vs. Deutsche Telekom AG |
| Manhattan Bridge vs. US GoldMining Common | Manhattan Bridge vs. Catalyst Metals Limited | Manhattan Bridge vs. ZhongAn Online P | Manhattan Bridge vs. Copperbank Resources Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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