Correlation Between Manitou BF and Energisme
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Energisme 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 Energisme 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 Energisme, you can compare the effects of market volatilities on Manitou BF and Energisme 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 Energisme. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Energisme.
Diversification Opportunities for Manitou BF and Energisme
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Manitou and Energisme is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Energisme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energisme 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 Energisme. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energisme has no effect on the direction of Manitou BF i.e., Manitou BF and Energisme go up and down completely randomly.
Pair Corralation between Manitou BF and Energisme
Assuming the 90 days trading horizon Manitou BF SA is expected to generate 0.28 times more return on investment than Energisme. However, Manitou BF SA is 3.55 times less risky than Energisme. It trades about -0.05 of its potential returns per unit of risk. Energisme is currently generating about -0.04 per unit of risk. If you would invest 2,426 in Manitou BF SA on August 26, 2024 and sell it today you would lose (820.00) from holding Manitou BF SA or give up 33.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. Energisme
Performance |
| Timeline |
| Manitou BF SA |
| Energisme |
Manitou BF and Energisme Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Energisme
The main advantage of trading using opposite Manitou BF and Energisme positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Energisme 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 Energisme will offset losses from the drop in Energisme's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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