Correlation Between Manitou BF and Amundi German
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Amundi German 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 Amundi German 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 Amundi German Bund, you can compare the effects of market volatilities on Manitou BF and Amundi German 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 Amundi German. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Amundi German.
Diversification Opportunities for Manitou BF and Amundi German
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Manitou and Amundi is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Amundi German Bund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi German Bund 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 Amundi German. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi German Bund has no effect on the direction of Manitou BF i.e., Manitou BF and Amundi German go up and down completely randomly.
Pair Corralation between Manitou BF and Amundi German
Assuming the 90 days trading horizon Manitou BF SA is expected to generate 3.84 times more return on investment than Amundi German. However, Manitou BF is 3.84 times more volatile than Amundi German Bund. It trades about 0.48 of its potential returns per unit of risk. Amundi German Bund is currently generating about 0.24 per unit of risk. If you would invest 1,624 in Manitou BF SA on October 25, 2024 and sell it today you would earn a total of 366.00 from holding Manitou BF SA or generate 22.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. Amundi German Bund
Performance |
| Timeline |
| Manitou BF SA |
| Amundi German Bund |
Manitou BF and Amundi German Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Amundi German
The main advantage of trading using opposite Manitou BF and Amundi German positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Amundi German 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 Amundi German will offset losses from the drop in Amundi German's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Amundi German vs. Lyxor UCITS CAC | Amundi German vs. Lyxor UCITS Stoxx | Amundi German vs. Lyxor UCITS Daily | Amundi German vs. Lyxor SP 500 |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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