Correlation Between Manitou BF and Lyxor MSCI
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Lyxor MSCI 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 Lyxor MSCI 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 Lyxor MSCI China, you can compare the effects of market volatilities on Manitou BF and Lyxor MSCI 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 Lyxor MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Lyxor MSCI.
Diversification Opportunities for Manitou BF and Lyxor MSCI
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Manitou and Lyxor is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Lyxor MSCI China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor MSCI China 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 Lyxor MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor MSCI China has no effect on the direction of Manitou BF i.e., Manitou BF and Lyxor MSCI go up and down completely randomly.
Pair Corralation between Manitou BF and Lyxor MSCI
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Lyxor MSCI. In addition to that, Manitou BF is 1.11 times more volatile than Lyxor MSCI China. It trades about -0.23 of its total potential returns per unit of risk. Lyxor MSCI China is currently generating about -0.02 per unit of volatility. If you would invest 8,715 in Lyxor MSCI China on September 1, 2024 and sell it today you would lose (82.00) from holding Lyxor MSCI China or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. Lyxor MSCI China
Performance |
| Timeline |
| Manitou BF SA |
| Lyxor MSCI China |
Manitou BF and Lyxor MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Lyxor MSCI
The main advantage of trading using opposite Manitou BF and Lyxor MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Lyxor MSCI 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 Lyxor MSCI will offset losses from the drop in Lyxor MSCI's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Lyxor MSCI vs. Multi Units France | Lyxor MSCI vs. Manitou BF SA | Lyxor MSCI vs. Ossiam Minimum Variance | Lyxor MSCI vs. Granite 3x LVMH |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Transaction History View history of all your transactions and understand their impact on performance |