Correlation Between Manitou BF and Accor S
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Accor S 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 Manitou BF and Accor S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manitou BF SA and Accor S A, you can compare the effects of market volatilities on Manitou BF and Accor S 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 Manitou BF with a short position of Accor S. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Accor S.
Diversification Opportunities for Manitou BF and Accor S
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manitou and Accor is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Accor S A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accor S A and Manitou BF 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 Manitou BF SA are associated (or correlated) with Accor S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accor S A has no effect on the direction of Manitou BF i.e., Manitou BF and Accor S go up and down completely randomly.
Pair Corralation between Manitou BF and Accor S
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Accor S. In addition to that, Manitou BF is 1.57 times more volatile than Accor S A. It trades about -0.1 of its total potential returns per unit of risk. Accor S A is currently generating about 0.04 per unit of volatility. If you would invest 4,049 in Accor S A on September 3, 2024 and sell it today you would earn a total of 319.00 from holding Accor S A or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. Accor S A
Performance |
| Timeline |
| Manitou BF SA |
| Accor S A |
Manitou BF and Accor S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Accor S
The main advantage of trading using opposite Manitou BF and Accor S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Accor S 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 Accor S will offset losses from the drop in Accor S's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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