Correlation Between Amundi Index and Manitou BF
Can any of the company-specific risk be diversified away by investing in both Amundi 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 Amundi 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 Amundi Index Solutions and Manitou BF SA, you can compare the effects of market volatilities on Amundi 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 Amundi Index with a short position of Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and Manitou BF.
Diversification Opportunities for Amundi Index and Manitou BF
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amundi and Manitou is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions 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 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 Amundi Index Solutions 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 Index i.e., Amundi Index and Manitou BF go up and down completely randomly.
Pair Corralation between Amundi Index and Manitou BF
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 0.39 times more return on investment than Manitou BF. However, Amundi Index Solutions is 2.58 times less risky than Manitou BF. It trades about 0.07 of its potential returns per unit of risk. Manitou BF SA is currently generating about -0.06 per unit of risk. If you would invest 9,792 in Amundi Index Solutions on September 1, 2024 and sell it today you would earn a total of 1,160 from holding Amundi Index Solutions or generate 11.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.48% |
| Values | Daily Returns |
Amundi Index Solutions vs. Manitou BF SA
Performance |
| Timeline |
| Amundi Index Solutions |
| Manitou BF SA |
Amundi Index and Manitou BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and Manitou BF
The main advantage of trading using opposite Amundi Index and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi 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.| Amundi Index vs. Lyxor MSCI China | Amundi Index vs. Manitou BF SA | Amundi Index vs. Ossiam Minimum Variance | Amundi Index vs. Granite 3x LVMH |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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