Correlation Between Groupe CRIT and Manitou BF
Can any of the company-specific risk be diversified away by investing in both Groupe CRIT 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 Groupe CRIT and Manitou BF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Groupe CRIT SA and Manitou BF SA, you can compare the effects of market volatilities on Groupe CRIT 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 Groupe CRIT with a short position of Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Groupe CRIT and Manitou BF.
Diversification Opportunities for Groupe CRIT and Manitou BF
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Groupe and Manitou is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Groupe CRIT SA 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 Groupe CRIT 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 Groupe CRIT SA 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 Groupe CRIT i.e., Groupe CRIT and Manitou BF go up and down completely randomly.
Pair Corralation between Groupe CRIT and Manitou BF
Assuming the 90 days trading horizon Groupe CRIT SA is expected to generate 0.71 times more return on investment than Manitou BF. However, Groupe CRIT SA is 1.4 times less risky than Manitou BF. It trades about 0.0 of its potential returns per unit of risk. Manitou BF SA is currently generating about -0.04 per unit of risk. If you would invest 6,514 in Groupe CRIT SA on September 1, 2024 and sell it today you would lose (214.00) from holding Groupe CRIT SA or give up 3.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Groupe CRIT SA vs. Manitou BF SA
Performance |
| Timeline |
| Groupe CRIT SA |
| Manitou BF SA |
Groupe CRIT and Manitou BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Groupe CRIT and Manitou BF
The main advantage of trading using opposite Groupe CRIT and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Groupe CRIT 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.| Groupe CRIT vs. Synergie SE | Groupe CRIT vs. Alten SA | Groupe CRIT vs. Manitou BF SA | Groupe CRIT vs. Linedata Services 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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