Correlation Between Manitou BF and ATEME SA
Can any of the company-specific risk be diversified away by investing in both Manitou BF and ATEME 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 ATEME 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 ATEME SA, you can compare the effects of market volatilities on Manitou BF and ATEME 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 ATEME SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and ATEME SA.
Diversification Opportunities for Manitou BF and ATEME SA
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manitou and ATEME is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and ATEME SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATEME 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 ATEME SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATEME SA has no effect on the direction of Manitou BF i.e., Manitou BF and ATEME SA go up and down completely randomly.
Pair Corralation between Manitou BF and ATEME SA
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the ATEME SA. But the stock apears to be less risky and, when comparing its historical volatility, Manitou BF SA is 2.11 times less risky than ATEME SA. The stock trades about -0.28 of its potential returns per unit of risk. The ATEME SA is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 446.00 in ATEME SA on September 3, 2024 and sell it today you would earn a total of 33.00 from holding ATEME SA or generate 7.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. ATEME SA
Performance |
| Timeline |
| Manitou BF SA |
| ATEME SA |
Manitou BF and ATEME SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and ATEME SA
The main advantage of trading using opposite Manitou BF and ATEME SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, ATEME 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 ATEME SA will offset losses from the drop in ATEME SA's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| ATEME SA vs. CMG Cleantech SA | ATEME SA vs. Gaztransport Technigaz SAS | ATEME SA vs. ZCCM Investments Holdings | ATEME SA vs. Lexibook Linguistic Electronic |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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