Correlation Between Manitou BF and Groupe CRIT
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Groupe CRIT 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 Groupe CRIT 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 Groupe CRIT SA, you can compare the effects of market volatilities on Manitou BF and Groupe CRIT 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 Groupe CRIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Groupe CRIT.
Diversification Opportunities for Manitou BF and Groupe CRIT
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Manitou and Groupe is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Groupe CRIT SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe CRIT 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 Groupe CRIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe CRIT SA has no effect on the direction of Manitou BF i.e., Manitou BF and Groupe CRIT go up and down completely randomly.
Pair Corralation between Manitou BF and Groupe CRIT
Assuming the 90 days trading horizon Manitou BF SA is expected to generate 1.04 times more return on investment than Groupe CRIT. However, Manitou BF is 1.04 times more volatile than Groupe CRIT SA. It trades about -0.23 of its potential returns per unit of risk. Groupe CRIT SA is currently generating about -0.34 per unit of risk. If you would invest 1,734 in Manitou BF SA on September 1, 2024 and sell it today you would lose (164.00) from holding Manitou BF SA or give up 9.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Manitou BF SA vs. Groupe CRIT SA
Performance |
| Timeline |
| Manitou BF SA |
| Groupe CRIT SA |
Manitou BF and Groupe CRIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Groupe CRIT
The main advantage of trading using opposite Manitou BF and Groupe CRIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Groupe CRIT 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 Groupe CRIT will offset losses from the drop in Groupe CRIT's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Groupe CRIT vs. Synergie SE | Groupe CRIT vs. Alten SA | Groupe CRIT vs. Manitou BF SA | Groupe CRIT vs. Linedata Services 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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