Correlation Between Manitou BF and Riber SA
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Riber 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 Riber 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 Riber SA, you can compare the effects of market volatilities on Manitou BF and Riber 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 Riber SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Riber SA.
Diversification Opportunities for Manitou BF and Riber SA
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Manitou and Riber is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Riber SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riber 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 Riber SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riber SA has no effect on the direction of Manitou BF i.e., Manitou BF and Riber SA go up and down completely randomly.
Pair Corralation between Manitou BF and Riber SA
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Riber SA. In addition to that, Manitou BF is 1.26 times more volatile than Riber SA. It trades about -0.19 of its total potential returns per unit of risk. Riber SA is currently generating about -0.07 per unit of volatility. If you would invest 265.00 in Riber SA on August 31, 2024 and sell it today you would lose (14.00) from holding Riber SA or give up 5.28% 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. Riber SA
Performance |
| Timeline |
| Manitou BF SA |
| Riber SA |
Manitou BF and Riber SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Riber SA
The main advantage of trading using opposite Manitou BF and Riber SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Riber 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 Riber SA will offset losses from the drop in Riber SA's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Riber SA vs. Vallourec | Riber SA vs. Dassault Systemes SE | Riber SA vs. Teleperformance SE | Riber SA vs. Atos SE |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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