Correlation Between Manitou BF and Invesco EQQQ
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Invesco EQQQ 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 Invesco EQQQ 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 Invesco EQQQ NASDAQ 100, you can compare the effects of market volatilities on Manitou BF and Invesco EQQQ 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 Invesco EQQQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Invesco EQQQ.
Diversification Opportunities for Manitou BF and Invesco EQQQ
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manitou and Invesco is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Invesco EQQQ NASDAQ 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco EQQQ NASDAQ 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 Invesco EQQQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco EQQQ NASDAQ has no effect on the direction of Manitou BF i.e., Manitou BF and Invesco EQQQ go up and down completely randomly.
Pair Corralation between Manitou BF and Invesco EQQQ
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Invesco EQQQ. In addition to that, Manitou BF is 1.85 times more volatile than Invesco EQQQ NASDAQ 100. It trades about -0.01 of its total potential returns per unit of risk. Invesco EQQQ NASDAQ 100 is currently generating about 0.11 per unit of volatility. If you would invest 26,954 in Invesco EQQQ NASDAQ 100 on August 29, 2024 and sell it today you would earn a total of 21,831 from holding Invesco EQQQ NASDAQ 100 or generate 80.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. Invesco EQQQ NASDAQ 100
Performance |
| Timeline |
| Manitou BF SA |
| Invesco EQQQ NASDAQ |
Manitou BF and Invesco EQQQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Invesco EQQQ
The main advantage of trading using opposite Manitou BF and Invesco EQQQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Invesco EQQQ 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 Invesco EQQQ will offset losses from the drop in Invesco EQQQ's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Invesco EQQQ vs. Amundi Index Solutions | Invesco EQQQ vs. Manitou BF SA | Invesco EQQQ vs. Ossiam Minimum Variance | Invesco EQQQ vs. Ekinops 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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