Correlation Between Energisme and Manitou BF
Can any of the company-specific risk be diversified away by investing in both Energisme 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 Energisme and Manitou BF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energisme and Manitou BF SA, you can compare the effects of market volatilities on Energisme 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 Energisme with a short position of Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energisme and Manitou BF.
Diversification Opportunities for Energisme and Manitou BF
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Energisme and Manitou is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Energisme 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 Energisme 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 Energisme 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 Energisme i.e., Energisme and Manitou BF go up and down completely randomly.
Pair Corralation between Energisme and Manitou BF
Assuming the 90 days trading horizon Energisme is expected to generate 2.49 times more return on investment than Manitou BF. However, Energisme is 2.49 times more volatile than Manitou BF SA. It trades about -0.07 of its potential returns per unit of risk. Manitou BF SA is currently generating about -0.24 per unit of risk. If you would invest 0.64 in Energisme on August 26, 2024 and sell it today you would lose (0.05) from holding Energisme or give up 7.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energisme vs. Manitou BF SA
Performance |
| Timeline |
| Energisme |
| Manitou BF SA |
Energisme and Manitou BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energisme and Manitou BF
The main advantage of trading using opposite Energisme and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energisme 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.| Energisme vs. Kerlink SAS | Energisme vs. Nacon Sa | Energisme vs. Agripower France Sa | Energisme vs. Hydrogen Refueling Solutions |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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