Correlation Between Manitou BF and Media 6
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Media 6 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 Media 6 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 Media 6 SA, you can compare the effects of market volatilities on Manitou BF and Media 6 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 Media 6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Media 6.
Diversification Opportunities for Manitou BF and Media 6
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Manitou and Media is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Media 6 SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media 6 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 Media 6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media 6 SA has no effect on the direction of Manitou BF i.e., Manitou BF and Media 6 go up and down completely randomly.
Pair Corralation between Manitou BF and Media 6
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Media 6. But the stock apears to be less risky and, when comparing its historical volatility, Manitou BF SA is 2.85 times less risky than Media 6. The stock trades about -0.18 of its potential returns per unit of risk. The Media 6 SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,100 in Media 6 SA on August 30, 2024 and sell it today you would earn a total of 90.00 from holding Media 6 SA or generate 8.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Manitou BF SA vs. Media 6 SA
Performance |
| Timeline |
| Manitou BF SA |
| Media 6 SA |
Manitou BF and Media 6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Media 6
The main advantage of trading using opposite Manitou BF and Media 6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Media 6 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 Media 6 will offset losses from the drop in Media 6's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Media 6 vs. Lacroix Group SA | Media 6 vs. Fiducial Office Solutions | Media 6 vs. ACTEOS SA | Media 6 vs. Passat Socit Anonyme |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |