Correlation Between Invesco SP and Manitou BF
Can any of the company-specific risk be diversified away by investing in both Invesco SP 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 Invesco SP and Manitou BF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco SP 500 and Manitou BF SA, you can compare the effects of market volatilities on Invesco SP 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 Invesco SP with a short position of Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco SP and Manitou BF.
Diversification Opportunities for Invesco SP and Manitou BF
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Invesco and Manitou is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Invesco SP 500 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 Invesco SP 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 Invesco SP 500 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 Invesco SP i.e., Invesco SP and Manitou BF go up and down completely randomly.
Pair Corralation between Invesco SP and Manitou BF
Assuming the 90 days trading horizon Invesco SP 500 is expected to generate 0.33 times more return on investment than Manitou BF. However, Invesco SP 500 is 3.05 times less risky than Manitou BF. It trades about 0.2 of its potential returns per unit of risk. Manitou BF SA is currently generating about -0.17 per unit of risk. If you would invest 3,070 in Invesco SP 500 on September 1, 2024 and sell it today you would earn a total of 632.00 from holding Invesco SP 500 or generate 20.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco SP 500 vs. Manitou BF SA
Performance |
| Timeline |
| Invesco SP 500 |
| Manitou BF SA |
Invesco SP and Manitou BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco SP and Manitou BF
The main advantage of trading using opposite Invesco SP and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco SP 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.| Invesco SP vs. Lyxor MSCI China | Invesco SP vs. Manitou BF SA | Invesco SP vs. Ossiam Minimum Variance | Invesco SP vs. Granite 3x LVMH |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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