Correlation Between Hydrogene and Manitou BF
Can any of the company-specific risk be diversified away by investing in both Hydrogene 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 Hydrogene and Manitou BF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hydrogene De France and Manitou BF SA, you can compare the effects of market volatilities on Hydrogene 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 Hydrogene with a short position of Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hydrogene and Manitou BF.
Diversification Opportunities for Hydrogene and Manitou BF
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hydrogene and Manitou is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hydrogene De France 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 Hydrogene 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 Hydrogene De France 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 Hydrogene i.e., Hydrogene and Manitou BF go up and down completely randomly.
Pair Corralation between Hydrogene and Manitou BF
Assuming the 90 days trading horizon Hydrogene De France is expected to under-perform the Manitou BF. In addition to that, Hydrogene is 1.53 times more volatile than Manitou BF SA. It trades about -0.5 of its total potential returns per unit of risk. Manitou BF SA is currently generating about -0.23 per unit of volatility. If you would invest 1,742 in Manitou BF SA on August 29, 2024 and sell it today you would lose (172.00) from holding Manitou BF SA or give up 9.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hydrogene De France vs. Manitou BF SA
Performance |
| Timeline |
| Hydrogene De France |
| Manitou BF SA |
Hydrogene and Manitou BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hydrogene and Manitou BF
The main advantage of trading using opposite Hydrogene and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hydrogene 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.| Hydrogene vs. Lexibook Linguistic Electronic | Hydrogene vs. Manitou BF SA | Hydrogene vs. Ossiam Minimum Variance | Hydrogene vs. Ekinops 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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