Correlation Between SPDR Barclays and Manitou BF
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays 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 SPDR Barclays and Manitou BF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Barclays Euro and Manitou BF SA, you can compare the effects of market volatilities on SPDR Barclays 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 SPDR Barclays with a short position of Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and Manitou BF.
Diversification Opportunities for SPDR Barclays and Manitou BF
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SPDR and Manitou is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays Euro 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 SPDR Barclays 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 SPDR Barclays Euro 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 SPDR Barclays i.e., SPDR Barclays and Manitou BF go up and down completely randomly.
Pair Corralation between SPDR Barclays and Manitou BF
If you would invest (100.00) in Manitou BF SA on August 24, 2024 and sell it today you would earn a total of 100.00 from holding Manitou BF SA or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SPDR Barclays Euro vs. Manitou BF SA
Performance |
| Timeline |
| SPDR Barclays Euro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Manitou BF SA |
SPDR Barclays and Manitou BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and Manitou BF
The main advantage of trading using opposite SPDR Barclays and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays 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.The idea behind SPDR Barclays Euro and Manitou BF SA 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.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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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