Correlation Between Lyxor Index and Manitou BF
Can any of the company-specific risk be diversified away by investing in both Lyxor Index 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 Lyxor Index and Manitou BF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyxor Index Fund and Manitou BF SA, you can compare the effects of market volatilities on Lyxor Index 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 Lyxor Index with a short position of Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor Index and Manitou BF.
Diversification Opportunities for Lyxor Index and Manitou BF
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lyxor and Manitou is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor Index Fund 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 Lyxor Index 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 Lyxor Index Fund 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 Lyxor Index i.e., Lyxor Index and Manitou BF go up and down completely randomly.
Pair Corralation between Lyxor Index and Manitou BF
Assuming the 90 days trading horizon Lyxor Index Fund is expected to generate 0.37 times more return on investment than Manitou BF. However, Lyxor Index Fund is 2.72 times less risky than Manitou BF. It trades about 0.1 of its potential returns per unit of risk. Manitou BF SA is currently generating about -0.18 per unit of risk. If you would invest 6,265 in Lyxor Index Fund on September 3, 2024 and sell it today you would earn a total of 645.00 from holding Lyxor Index Fund or generate 10.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor Index Fund vs. Manitou BF SA
Performance |
| Timeline |
| Lyxor Index Fund |
| Manitou BF SA |
Lyxor Index and Manitou BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor Index and Manitou BF
The main advantage of trading using opposite Lyxor Index and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor Index 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.| Lyxor Index vs. Lyxor Index Fund | Lyxor Index vs. Lyxor Index Fund | Lyxor Index vs. Multi Units Luxembourg |
| 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 Stocks Directory module to find actively traded stocks across global markets.
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