Correlation Between Manitou BF and Eurobio Scientific
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Eurobio Scientific 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 Eurobio Scientific 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 Eurobio Scientific SA, you can compare the effects of market volatilities on Manitou BF and Eurobio Scientific 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 Eurobio Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Eurobio Scientific.
Diversification Opportunities for Manitou BF and Eurobio Scientific
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Manitou and Eurobio is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Eurobio Scientific SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobio Scientific 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 Eurobio Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurobio Scientific has no effect on the direction of Manitou BF i.e., Manitou BF and Eurobio Scientific go up and down completely randomly.
Pair Corralation between Manitou BF and Eurobio Scientific
Assuming the 90 days trading horizon Manitou BF SA is expected to generate 3.08 times more return on investment than Eurobio Scientific. However, Manitou BF is 3.08 times more volatile than Eurobio Scientific SA. It trades about 0.31 of its potential returns per unit of risk. Eurobio Scientific SA is currently generating about 0.05 per unit of risk. If you would invest 1,858 in Manitou BF SA on November 8, 2024 and sell it today you would earn a total of 382.00 from holding Manitou BF SA or generate 20.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. Eurobio Scientific SA
Performance |
| Timeline |
| Manitou BF SA |
| Eurobio Scientific |
Manitou BF and Eurobio Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Eurobio Scientific
The main advantage of trading using opposite Manitou BF and Eurobio Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Eurobio Scientific 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 Eurobio Scientific will offset losses from the drop in Eurobio Scientific's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Eurobio Scientific vs. Biosynex | Eurobio Scientific vs. Novacyt | Eurobio Scientific vs. Biophytis SA | Eurobio Scientific vs. Intrasense |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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