Correlation Between Manitou BF and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Amundi Index 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 Index 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 Index Solutions, you can compare the effects of market volatilities on Manitou BF and Amundi Index 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 Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Amundi Index.
Diversification Opportunities for Manitou BF and Amundi Index
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Manitou and Amundi is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions 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 Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of Manitou BF i.e., Manitou BF and Amundi Index go up and down completely randomly.
Pair Corralation between Manitou BF and Amundi Index
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Amundi Index. In addition to that, Manitou BF is 1.53 times more volatile than Amundi Index Solutions. It trades about -0.18 of its total potential returns per unit of risk. Amundi Index Solutions is currently generating about -0.07 per unit of volatility. If you would invest 33,329 in Amundi Index Solutions on August 30, 2024 and sell it today you would lose (739.00) from holding Amundi Index Solutions or give up 2.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. Amundi Index Solutions
Performance |
| Timeline |
| Manitou BF SA |
| Amundi Index Solutions |
Manitou BF and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Amundi Index
The main advantage of trading using opposite Manitou BF and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Amundi Index 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 Index will offset losses from the drop in Amundi Index's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Amundi Index vs. Manitou BF SA | Amundi Index vs. Ossiam Minimum Variance | Amundi Index vs. Ekinops SA | Amundi Index vs. Orapi 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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