Correlation Between Manitou BF and Dassault Aviation
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Dassault Aviation 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 Dassault Aviation 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 Dassault Aviation SA, you can compare the effects of market volatilities on Manitou BF and Dassault Aviation 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 Dassault Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Dassault Aviation.
Diversification Opportunities for Manitou BF and Dassault Aviation
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Manitou and Dassault is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Dassault Aviation SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dassault Aviation 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 Dassault Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dassault Aviation has no effect on the direction of Manitou BF i.e., Manitou BF and Dassault Aviation go up and down completely randomly.
Pair Corralation between Manitou BF and Dassault Aviation
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Dassault Aviation. In addition to that, Manitou BF is 1.33 times more volatile than Dassault Aviation SA. It trades about -0.05 of its total potential returns per unit of risk. Dassault Aviation SA is currently generating about 0.02 per unit of volatility. If you would invest 17,946 in Dassault Aviation SA on September 3, 2024 and sell it today you would earn a total of 984.00 from holding Dassault Aviation SA or generate 5.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. Dassault Aviation SA
Performance |
| Timeline |
| Manitou BF SA |
| Dassault Aviation |
Manitou BF and Dassault Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Dassault Aviation
The main advantage of trading using opposite Manitou BF and Dassault Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Dassault Aviation 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 Dassault Aviation will offset losses from the drop in Dassault Aviation's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Dassault Aviation vs. Thales SA | Dassault Aviation vs. Dassault Systemes SE | Dassault Aviation vs. Safran SA | Dassault Aviation vs. Eiffage 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 Stocks Directory module to find actively traded stocks across global markets.
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