Correlation Between Amundi SP and Manitou BF
Can any of the company-specific risk be diversified away by investing in both Amundi SP 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 Amundi SP and Manitou BF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi SP Global and Manitou BF SA, you can compare the effects of market volatilities on Amundi SP 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 Amundi SP with a short position of Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi SP and Manitou BF.
Diversification Opportunities for Amundi SP and Manitou BF
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amundi and Manitou is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Amundi SP Global 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 Amundi SP 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 Amundi SP Global 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 Amundi SP i.e., Amundi SP and Manitou BF go up and down completely randomly.
Pair Corralation between Amundi SP and Manitou BF
Assuming the 90 days trading horizon Amundi SP Global is expected to generate 0.53 times more return on investment than Manitou BF. However, Amundi SP Global is 1.9 times less risky than Manitou BF. It trades about 0.01 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 21,278 in Amundi SP Global on August 30, 2024 and sell it today you would earn a total of 12.00 from holding Amundi SP Global or generate 0.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi SP Global vs. Manitou BF SA
Performance |
| Timeline |
| Amundi SP Global |
| Manitou BF SA |
Amundi SP and Manitou BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi SP and Manitou BF
The main advantage of trading using opposite Amundi SP and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi SP 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.| Amundi SP vs. Manitou BF SA | Amundi SP vs. Ossiam Minimum Variance | Amundi SP vs. Ekinops SA | Amundi SP vs. Orapi 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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