Correlation Between Manitex International and Blue Bird
Can any of the company-specific risk be diversified away by investing in both Manitex International and Blue Bird 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 Manitex International and Blue Bird into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manitex International and Blue Bird Corp, you can compare the effects of market volatilities on Manitex International and Blue Bird 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 Manitex International with a short position of Blue Bird. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitex International and Blue Bird.
Diversification Opportunities for Manitex International and Blue Bird
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Manitex and Blue is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Manitex International and Blue Bird Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Bird Corp and Manitex International 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 Manitex International are associated (or correlated) with Blue Bird. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Bird Corp has no effect on the direction of Manitex International i.e., Manitex International and Blue Bird go up and down completely randomly.
Pair Corralation between Manitex International and Blue Bird
If you would invest 2,450 in Blue Bird Corp on November 9, 2024 and sell it today you would earn a total of 1,273 from holding Blue Bird Corp or generate 51.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Manitex International vs. Blue Bird Corp
Performance |
| Timeline |
| Manitex International |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Blue Bird Corp |
Manitex International and Blue Bird Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitex International and Blue Bird
The main advantage of trading using opposite Manitex International and Blue Bird positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitex International position performs unexpectedly, Blue Bird 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 Blue Bird will offset losses from the drop in Blue Bird's long position.| Manitex International vs. Astec Industries | Manitex International vs. Hyster Yale Materials Handling | Manitex International vs. Shyft Group | Manitex International vs. Rev Group |
| Blue Bird vs. AYRO Inc | Blue Bird vs. Canoo Inc | Blue Bird vs. Hyzon Motors | Blue Bird vs. Faraday Future Intelligent |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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