Correlation Between Manitou BF and Europlasma
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Europlasma 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 Europlasma 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 Europlasma SA, you can compare the effects of market volatilities on Manitou BF and Europlasma 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 Europlasma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Europlasma.
Diversification Opportunities for Manitou BF and Europlasma
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Manitou and Europlasma is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Europlasma SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Europlasma SA 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 Europlasma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Europlasma SA has no effect on the direction of Manitou BF i.e., Manitou BF and Europlasma go up and down completely randomly.
Pair Corralation between Manitou BF and Europlasma
Assuming the 90 days trading horizon Manitou BF SA is expected to generate 0.42 times more return on investment than Europlasma. However, Manitou BF SA is 2.4 times less risky than Europlasma. It trades about -0.2 of its potential returns per unit of risk. Europlasma SA is currently generating about -0.85 per unit of risk. If you would invest 1,742 in Manitou BF SA on August 29, 2024 and sell it today you would lose (148.00) from holding Manitou BF SA or give up 8.5% 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. Europlasma SA
Performance |
| Timeline |
| Manitou BF SA |
| Europlasma SA |
Manitou BF and Europlasma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Europlasma
The main advantage of trading using opposite Manitou BF and Europlasma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Europlasma 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 Europlasma will offset losses from the drop in Europlasma's long position.| Manitou BF vs. Publicis Groupe SA | Manitou BF vs. Pernod Ricard SA | Manitou BF vs. Compagnie Generale des | Manitou BF vs. Compagnie de Saint Gobain |
| Europlasma vs. Prodways Group SA | Europlasma vs. Claranova SE | Europlasma vs. DBV Technologies SA | Europlasma 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |