Correlation Between Manitou BF and Acticor Biotech
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Acticor Biotech 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 Acticor Biotech 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 Acticor Biotech SAS, you can compare the effects of market volatilities on Manitou BF and Acticor Biotech 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 Acticor Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Acticor Biotech.
Diversification Opportunities for Manitou BF and Acticor Biotech
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Manitou and Acticor is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Acticor Biotech SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acticor Biotech SAS 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 Acticor Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acticor Biotech SAS has no effect on the direction of Manitou BF i.e., Manitou BF and Acticor Biotech go up and down completely randomly.
Pair Corralation between Manitou BF and Acticor Biotech
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Acticor Biotech. But the stock apears to be less risky and, when comparing its historical volatility, Manitou BF SA is 5.36 times less risky than Acticor Biotech. The stock trades about -0.03 of its potential returns per unit of risk. The Acticor Biotech SAS is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 542.00 in Acticor Biotech SAS on September 12, 2024 and sell it today you would lose (517.00) from holding Acticor Biotech SAS or give up 95.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. Acticor Biotech SAS
Performance |
| Timeline |
| Manitou BF SA |
| Acticor Biotech SAS |
Manitou BF and Acticor Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Acticor Biotech
The main advantage of trading using opposite Manitou BF and Acticor Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Acticor Biotech 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 Acticor Biotech will offset losses from the drop in Acticor Biotech's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Acticor Biotech vs. FNP Technologies SA | Acticor Biotech vs. Mauna Kea Technologies | Acticor Biotech vs. Technip Energies BV | Acticor Biotech vs. Entech SE SAS |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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