Correlation Between Lacroix Group and Manitou BF
Can any of the company-specific risk be diversified away by investing in both Lacroix Group 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 Lacroix Group and Manitou BF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lacroix Group SA and Manitou BF SA, you can compare the effects of market volatilities on Lacroix Group 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 Lacroix Group with a short position of Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lacroix Group and Manitou BF.
Diversification Opportunities for Lacroix Group and Manitou BF
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lacroix and Manitou is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Lacroix Group SA 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 Lacroix Group 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 Lacroix Group SA 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 Lacroix Group i.e., Lacroix Group and Manitou BF go up and down completely randomly.
Pair Corralation between Lacroix Group and Manitou BF
Assuming the 90 days trading horizon Lacroix Group SA is expected to under-perform the Manitou BF. But the stock apears to be less risky and, when comparing its historical volatility, Lacroix Group SA is 2.0 times less risky than Manitou BF. The stock trades about -0.18 of its potential returns per unit of risk. The Manitou BF SA is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 1,744 in Manitou BF SA on November 4, 2024 and sell it today you would earn a total of 421.00 from holding Manitou BF SA or generate 24.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lacroix Group SA vs. Manitou BF SA
Performance |
| Timeline |
| Lacroix Group SA |
| Manitou BF SA |
Lacroix Group and Manitou BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lacroix Group and Manitou BF
The main advantage of trading using opposite Lacroix Group and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lacroix Group 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.| Lacroix Group vs. Manitou BF SA | Lacroix Group vs. Jacquet Metal Service | Lacroix Group vs. Mersen SA | Lacroix Group vs. Linedata Services 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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