Correlation Between Grolleau SAS and Manitou BF
Can any of the company-specific risk be diversified away by investing in both Grolleau SAS and Manitou BF 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 Grolleau SAS and Manitou BF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grolleau SAS and Manitou BF SA, you can compare the effects of market volatilities on Grolleau SAS and Manitou BF 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 Grolleau SAS with a short position of Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grolleau SAS and Manitou BF.
Diversification Opportunities for Grolleau SAS and Manitou BF
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grolleau and Manitou is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Grolleau SAS and Manitou BF SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manitou BF SA and Grolleau SAS 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 Grolleau SAS are associated (or correlated) with Manitou BF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manitou BF SA has no effect on the direction of Grolleau SAS i.e., Grolleau SAS and Manitou BF go up and down completely randomly.
Pair Corralation between Grolleau SAS and Manitou BF
Assuming the 90 days trading horizon Grolleau SAS is expected to generate 1.98 times more return on investment than Manitou BF. However, Grolleau SAS is 1.98 times more volatile than Manitou BF SA. It trades about 0.1 of its potential returns per unit of risk. Manitou BF SA is currently generating about -0.23 per unit of risk. If you would invest 389.00 in Grolleau SAS on September 1, 2024 and sell it today you would earn a total of 29.00 from holding Grolleau SAS or generate 7.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Grolleau SAS vs. Manitou BF SA
Performance |
| Timeline |
| Grolleau SAS |
| Manitou BF SA |
Grolleau SAS and Manitou BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grolleau SAS and Manitou BF
The main advantage of trading using opposite Grolleau SAS and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grolleau SAS position performs unexpectedly, Manitou BF 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 Manitou BF will offset losses from the drop in Manitou BF's long position.| Grolleau SAS vs. Berkem Group SA | Grolleau SAS vs. Waga Energy SA | Grolleau SAS vs. Entech SE SAS | Grolleau SAS vs. Orapi SA |
| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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