Correlation Between Manitou BF and ISPD Network
Can any of the company-specific risk be diversified away by investing in both Manitou BF and ISPD Network 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 ISPD Network 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 ISPD Network SA, you can compare the effects of market volatilities on Manitou BF and ISPD Network 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 ISPD Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and ISPD Network.
Diversification Opportunities for Manitou BF and ISPD Network
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Manitou and ISPD is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and ISPD Network SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ISPD Network 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 ISPD Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ISPD Network SA has no effect on the direction of Manitou BF i.e., Manitou BF and ISPD Network go up and down completely randomly.
Pair Corralation between Manitou BF and ISPD Network
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the ISPD Network. In addition to that, Manitou BF is 1.05 times more volatile than ISPD Network SA. It trades about -0.24 of its total potential returns per unit of risk. ISPD Network SA is currently generating about 0.29 per unit of volatility. If you would invest 280.00 in ISPD Network SA on August 26, 2024 and sell it today you would earn a total of 30.00 from holding ISPD Network SA or generate 10.71% 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. ISPD Network SA
Performance |
| Timeline |
| Manitou BF SA |
| ISPD Network SA |
Manitou BF and ISPD Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and ISPD Network
The main advantage of trading using opposite Manitou BF and ISPD Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, ISPD Network 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 ISPD Network will offset losses from the drop in ISPD Network's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| ISPD Network vs. Lexibook Linguistic Electronic | ISPD Network vs. Manitou BF SA | ISPD Network vs. Ossiam Minimum Variance | ISPD Network vs. Granite 3x LVMH |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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