Correlation Between Manitou BF and Streamwide
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Streamwide 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 Streamwide 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 Streamwide, you can compare the effects of market volatilities on Manitou BF and Streamwide 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 Streamwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Streamwide.
Diversification Opportunities for Manitou BF and Streamwide
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Manitou and Streamwide is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Streamwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Streamwide 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 Streamwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Streamwide has no effect on the direction of Manitou BF i.e., Manitou BF and Streamwide go up and down completely randomly.
Pair Corralation between Manitou BF and Streamwide
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Streamwide. But the stock apears to be less risky and, when comparing its historical volatility, Manitou BF SA is 1.05 times less risky than Streamwide. The stock trades about -0.17 of its potential returns per unit of risk. The Streamwide is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,600 in Streamwide on September 1, 2024 and sell it today you would earn a total of 440.00 from holding Streamwide or generate 16.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.24% |
| Values | Daily Returns |
Manitou BF SA vs. Streamwide
Performance |
| Timeline |
| Manitou BF SA |
| Streamwide |
Manitou BF and Streamwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Streamwide
The main advantage of trading using opposite Manitou BF and Streamwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Streamwide 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 Streamwide will offset losses from the drop in Streamwide's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Streamwide vs. Sidetrade | Streamwide vs. Esker SA | Streamwide vs. Xilam Animation | Streamwide vs. Wedia 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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