Correlation Between Manitou BF and Bilendi
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Bilendi 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 Bilendi 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 Bilendi, you can compare the effects of market volatilities on Manitou BF and Bilendi 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 Bilendi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Bilendi.
Diversification Opportunities for Manitou BF and Bilendi
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Manitou and Bilendi is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Bilendi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilendi 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 Bilendi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilendi has no effect on the direction of Manitou BF i.e., Manitou BF and Bilendi go up and down completely randomly.
Pair Corralation between Manitou BF and Bilendi
Assuming the 90 days trading horizon Manitou BF SA is expected to generate 1.38 times more return on investment than Bilendi. However, Manitou BF is 1.38 times more volatile than Bilendi. It trades about -0.07 of its potential returns per unit of risk. Bilendi is currently generating about -0.73 per unit of risk. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. Bilendi
Performance |
| Timeline |
| Manitou BF SA |
| Bilendi |
Manitou BF and Bilendi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Bilendi
The main advantage of trading using opposite Manitou BF and Bilendi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Bilendi 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 Bilendi will offset losses from the drop in Bilendi's long position.| Manitou BF vs. Schneider Electric SE | Manitou BF vs. Publicis Groupe SA | Manitou BF vs. Pernod Ricard SA | Manitou BF vs. Compagnie Generale des |
| Bilendi vs. BigBen Interactive | Bilendi vs. Trigano SA | Bilendi vs. Chargeurs SA | Bilendi vs. Manitou BF SA |
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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