Correlation Between Memscap Regpt and Manitou BF
Can any of the company-specific risk be diversified away by investing in both Memscap Regpt 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 Memscap Regpt and Manitou BF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Memscap Regpt and Manitou BF SA, you can compare the effects of market volatilities on Memscap Regpt 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 Memscap Regpt with a short position of Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Memscap Regpt and Manitou BF.
Diversification Opportunities for Memscap Regpt and Manitou BF
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Memscap and Manitou is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Memscap Regpt 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 Memscap Regpt 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 Memscap Regpt 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 Memscap Regpt i.e., Memscap Regpt and Manitou BF go up and down completely randomly.
Pair Corralation between Memscap Regpt and Manitou BF
Assuming the 90 days trading horizon Memscap Regpt is expected to under-perform the Manitou BF. In addition to that, Memscap Regpt is 1.54 times more volatile than Manitou BF SA. It trades about -0.23 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 1,666 in Manitou BF SA on August 24, 2024 and sell it today you would lose (62.00) from holding Manitou BF SA or give up 3.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Memscap Regpt vs. Manitou BF SA
Performance |
| Timeline |
| Memscap Regpt |
| Manitou BF SA |
Memscap Regpt and Manitou BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Memscap Regpt and Manitou BF
The main advantage of trading using opposite Memscap Regpt and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Memscap Regpt 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.| Memscap Regpt vs. Vergnet | Memscap Regpt vs. DBT SA | Memscap Regpt vs. Drone Volt SA | Memscap Regpt vs. Gaussin |
| Manitou BF vs. Schneider Electric SE | Manitou BF vs. Publicis Groupe SA | Manitou BF vs. Pernod Ricard SA | Manitou BF vs. Compagnie Generale des |
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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