Correlation Between Manitou BF and Lyxor SP
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Lyxor SP 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 SP 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 SP 500, you can compare the effects of market volatilities on Manitou BF and Lyxor SP 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 SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Lyxor SP.
Diversification Opportunities for Manitou BF and Lyxor SP
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manitou and Lyxor is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Lyxor SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor SP 500 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 SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor SP 500 has no effect on the direction of Manitou BF i.e., Manitou BF and Lyxor SP go up and down completely randomly.
Pair Corralation between Manitou BF and Lyxor SP
Assuming the 90 days trading horizon Manitou BF SA is expected to generate 1.2 times more return on investment than Lyxor SP. However, Manitou BF is 1.2 times more volatile than Lyxor SP 500. It trades about -0.02 of its potential returns per unit of risk. Lyxor SP 500 is currently generating about -0.05 per unit of risk. If you would invest 2,091 in Manitou BF SA on September 3, 2024 and sell it today you would lose (521.00) from holding Manitou BF SA or give up 24.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. Lyxor SP 500
Performance |
| Timeline |
| Manitou BF SA |
| Lyxor SP 500 |
Manitou BF and Lyxor SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Lyxor SP
The main advantage of trading using opposite Manitou BF and Lyxor SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Lyxor SP 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 SP will offset losses from the drop in Lyxor SP's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Lyxor SP vs. Amundi Index Solutions | Lyxor SP vs. Amundi Index Solutions | Lyxor SP vs. Manitou BF SA | Lyxor SP vs. Ossiam Minimum Variance |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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