Correlation Between Manitou BF and Groupe Guillin
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Groupe Guillin 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 Groupe Guillin 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 Groupe Guillin SA, you can compare the effects of market volatilities on Manitou BF and Groupe Guillin 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 Groupe Guillin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Groupe Guillin.
Diversification Opportunities for Manitou BF and Groupe Guillin
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Manitou and Groupe is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Groupe Guillin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Guillin 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 Groupe Guillin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Guillin SA has no effect on the direction of Manitou BF i.e., Manitou BF and Groupe Guillin go up and down completely randomly.
Pair Corralation between Manitou BF and Groupe Guillin
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Groupe Guillin. In addition to that, Manitou BF is 1.16 times more volatile than Groupe Guillin SA. It trades about -0.02 of its total potential returns per unit of risk. Groupe Guillin SA is currently generating about 0.02 per unit of volatility. If you would invest 2,424 in Groupe Guillin SA on August 29, 2024 and sell it today you would earn a total of 171.00 from holding Groupe Guillin SA or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. Groupe Guillin SA
Performance |
| Timeline |
| Manitou BF SA |
| Groupe Guillin SA |
Manitou BF and Groupe Guillin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Groupe Guillin
The main advantage of trading using opposite Manitou BF and Groupe Guillin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Groupe Guillin 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 Groupe Guillin will offset losses from the drop in Groupe Guillin'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 |
| Groupe Guillin vs. Neurones | Groupe Guillin vs. Aubay Socit Anonyme | Groupe Guillin vs. Infotel SA | Groupe Guillin 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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