Correlation Between Lion Electric and Manitex International
Can any of the company-specific risk be diversified away by investing in both Lion Electric and Manitex International 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 Lion Electric and Manitex International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion Electric Corp and Manitex International, you can compare the effects of market volatilities on Lion Electric and Manitex International 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 Lion Electric with a short position of Manitex International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion Electric and Manitex International.
Diversification Opportunities for Lion Electric and Manitex International
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lion and Manitex is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Lion Electric Corp and Manitex International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manitex International and Lion Electric 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 Lion Electric Corp are associated (or correlated) with Manitex International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manitex International has no effect on the direction of Lion Electric i.e., Lion Electric and Manitex International go up and down completely randomly.
Pair Corralation between Lion Electric and Manitex International
Considering the 90-day investment horizon Lion Electric Corp is expected to under-perform the Manitex International. In addition to that, Lion Electric is 33.31 times more volatile than Manitex International. It trades about -0.06 of its total potential returns per unit of risk. Manitex International is currently generating about 0.1 per unit of volatility. If you would invest 563.00 in Manitex International on September 12, 2024 and sell it today you would earn a total of 12.00 from holding Manitex International or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion Electric Corp vs. Manitex International
Performance |
| Timeline |
| Lion Electric Corp |
| Manitex International |
Lion Electric and Manitex International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion Electric and Manitex International
The main advantage of trading using opposite Lion Electric and Manitex International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion Electric position performs unexpectedly, Manitex International 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 Manitex International will offset losses from the drop in Manitex International's long position.| Lion Electric vs. Xos Inc | Lion Electric vs. Ideanomics | Lion Electric vs. Nikola Corp | Lion Electric vs. Wabash National |
| Manitex International vs. Astec Industries | Manitex International vs. Hyster Yale Materials Handling | Manitex International vs. Shyft Group | Manitex International vs. Rev Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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