Correlation Between Manitou BF and Elis SA
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Elis SA 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 Elis SA 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 Elis SA, you can compare the effects of market volatilities on Manitou BF and Elis SA 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 Elis SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Elis SA.
Diversification Opportunities for Manitou BF and Elis SA
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Manitou and Elis is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Elis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elis 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 Elis SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elis SA has no effect on the direction of Manitou BF i.e., Manitou BF and Elis SA go up and down completely randomly.
Pair Corralation between Manitou BF and Elis SA
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Elis SA. In addition to that, Manitou BF is 1.22 times more volatile than Elis SA. It trades about -0.02 of its total potential returns per unit of risk. Elis SA is currently generating about 0.06 per unit of volatility. If you would invest 1,255 in Elis SA on August 30, 2024 and sell it today you would earn a total of 665.00 from holding Elis SA or generate 52.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. Elis SA
Performance |
| Timeline |
| Manitou BF SA |
| Elis SA |
Manitou BF and Elis SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Elis SA
The main advantage of trading using opposite Manitou BF and Elis SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Elis SA 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 Elis SA will offset losses from the drop in Elis SA's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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