Correlation Between Medincell and Manitou BF
Can any of the company-specific risk be diversified away by investing in both Medincell 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 Medincell and Manitou BF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medincell SA and Manitou BF SA, you can compare the effects of market volatilities on Medincell 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 Medincell with a short position of Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medincell and Manitou BF.
Diversification Opportunities for Medincell and Manitou BF
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Medincell and Manitou is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Medincell 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 Medincell 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 Medincell 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 Medincell i.e., Medincell and Manitou BF go up and down completely randomly.
Pair Corralation between Medincell and Manitou BF
Assuming the 90 days trading horizon Medincell SA is expected to under-perform the Manitou BF. In addition to that, Medincell is 1.27 times more volatile than Manitou BF SA. It trades about -0.09 of its total potential returns per unit of risk. Manitou BF SA is currently generating about 0.07 per unit of volatility. If you would invest 1,894 in Manitou BF SA on November 28, 2024 and sell it today you would earn a total of 356.00 from holding Manitou BF SA or generate 18.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Medincell SA vs. Manitou BF SA
Performance |
| Timeline |
| Medincell SA |
| Manitou BF SA |
Medincell and Manitou BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medincell and Manitou BF
The main advantage of trading using opposite Medincell and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medincell 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.| Medincell vs. Gensight Biologics SA | Medincell vs. OSE Pharma SA | Medincell vs. Eurobio Scientific SA | Medincell vs. Abivax 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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