Correlation Between Manitou BF and TotalEnergies
Can any of the company-specific risk be diversified away by investing in both Manitou BF and TotalEnergies 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 TotalEnergies 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 TotalEnergies EP Gabon, you can compare the effects of market volatilities on Manitou BF and TotalEnergies 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 TotalEnergies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and TotalEnergies.
Diversification Opportunities for Manitou BF and TotalEnergies
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Manitou and TotalEnergies is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and TotalEnergies EP Gabon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TotalEnergies EP Gabon 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 TotalEnergies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TotalEnergies EP Gabon has no effect on the direction of Manitou BF i.e., Manitou BF and TotalEnergies go up and down completely randomly.
Pair Corralation between Manitou BF and TotalEnergies
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the TotalEnergies. But the stock apears to be less risky and, when comparing its historical volatility, Manitou BF SA is 2.32 times less risky than TotalEnergies. The stock trades about -0.3 of its potential returns per unit of risk. The TotalEnergies EP Gabon is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 15,850 in TotalEnergies EP Gabon on September 5, 2024 and sell it today you would earn a total of 2,800 from holding TotalEnergies EP Gabon or generate 17.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. TotalEnergies EP Gabon
Performance |
| Timeline |
| Manitou BF SA |
| TotalEnergies EP Gabon |
Manitou BF and TotalEnergies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and TotalEnergies
The main advantage of trading using opposite Manitou BF and TotalEnergies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, TotalEnergies 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 TotalEnergies will offset losses from the drop in TotalEnergies' long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| TotalEnergies vs. Vallourec | TotalEnergies vs. Eramet SA | TotalEnergies vs. Soitec SA | TotalEnergies vs. Manitou BF 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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