Correlation Between BNP Paribas and Manitou BF
Can any of the company-specific risk be diversified away by investing in both BNP Paribas 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 BNP Paribas and Manitou BF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BNP Paribas Easy and Manitou BF SA, you can compare the effects of market volatilities on BNP Paribas 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 BNP Paribas with a short position of Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of BNP Paribas and Manitou BF.
Diversification Opportunities for BNP Paribas and Manitou BF
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BNP and Manitou is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding BNP Paribas Easy 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 BNP Paribas 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 BNP Paribas Easy 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 BNP Paribas i.e., BNP Paribas and Manitou BF go up and down completely randomly.
Pair Corralation between BNP Paribas and Manitou BF
Assuming the 90 days trading horizon BNP Paribas is expected to generate 11.16 times less return on investment than Manitou BF. But when comparing it to its historical volatility, BNP Paribas Easy is 12.88 times less risky than Manitou BF. It trades about 0.22 of its potential returns per unit of risk. Manitou BF SA is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,040 in Manitou BF SA on November 28, 2024 and sell it today you would earn a total of 210.00 from holding Manitou BF SA or generate 10.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BNP Paribas Easy vs. Manitou BF SA
Performance |
| Timeline |
| BNP Paribas Easy |
| Manitou BF SA |
BNP Paribas and Manitou BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BNP Paribas and Manitou BF
The main advantage of trading using opposite BNP Paribas and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BNP Paribas 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.| BNP Paribas vs. BNP PARIBAS EASY | BNP Paribas vs. BNP Paribas Easy | BNP Paribas vs. BNP Paribas Easy | BNP Paribas vs. BNP Paribas Easy |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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