Correlation Between Manitou BF and NamR SA
Can any of the company-specific risk be diversified away by investing in both Manitou BF and NamR SA 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 NamR SA 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 NamR SA, you can compare the effects of market volatilities on Manitou BF and NamR SA 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 NamR SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and NamR SA.
Diversification Opportunities for Manitou BF and NamR SA
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Manitou and NamR is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and NamR SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NamR 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 NamR SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NamR SA has no effect on the direction of Manitou BF i.e., Manitou BF and NamR SA go up and down completely randomly.
Pair Corralation between Manitou BF and NamR SA
Assuming the 90 days trading horizon Manitou BF SA is expected to generate 0.19 times more return on investment than NamR SA. However, Manitou BF SA is 5.31 times less risky than NamR SA. It trades about -0.14 of its potential returns per unit of risk. NamR SA is currently generating about -0.07 per unit of risk. If you would invest 1,780 in Manitou BF SA on September 3, 2024 and sell it today you would lose (210.00) from holding Manitou BF SA or give up 11.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. NamR SA
Performance |
| Timeline |
| Manitou BF SA |
| NamR SA |
Manitou BF and NamR SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and NamR SA
The main advantage of trading using opposite Manitou BF and NamR SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, NamR SA 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 NamR SA will offset losses from the drop in NamR SA's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| NamR SA vs. LVMH Mot Hennessy | NamR SA vs. LOreal SA | NamR SA vs. Hermes International SCA | NamR SA 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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