Correlation Between Linedata Services and Manitou BF
Can any of the company-specific risk be diversified away by investing in both Linedata Services 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 Linedata Services and Manitou BF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Linedata Services SA and Manitou BF SA, you can compare the effects of market volatilities on Linedata Services 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 Linedata Services with a short position of Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Linedata Services and Manitou BF.
Diversification Opportunities for Linedata Services and Manitou BF
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Linedata and Manitou is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Linedata Services 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 Linedata Services 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 Linedata Services 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 Linedata Services i.e., Linedata Services and Manitou BF go up and down completely randomly.
Pair Corralation between Linedata Services and Manitou BF
Assuming the 90 days trading horizon Linedata Services SA is expected to generate 0.84 times more return on investment than Manitou BF. However, Linedata Services SA is 1.18 times less risky than Manitou BF. It trades about 0.08 of its potential returns per unit of risk. Manitou BF SA is currently generating about -0.01 per unit of risk. If you would invest 4,328 in Linedata Services SA on August 29, 2024 and sell it today you would earn a total of 3,752 from holding Linedata Services SA or generate 86.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Linedata Services SA vs. Manitou BF SA
Performance |
| Timeline |
| Linedata Services |
| Manitou BF SA |
Linedata Services and Manitou BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Linedata Services and Manitou BF
The main advantage of trading using opposite Linedata Services and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Linedata Services 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.| Linedata Services vs. Sword Group SE | Linedata Services vs. Neurones | Linedata Services vs. Aubay Socit Anonyme | Linedata Services vs. Groupe CRIT 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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