Correlation Between Manitou BF and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both Manitou BF and BNP Paribas 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 BNP Paribas 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 BNP Paribas Easy, you can compare the effects of market volatilities on Manitou BF and BNP Paribas 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 BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and BNP Paribas.
Diversification Opportunities for Manitou BF and BNP Paribas
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Manitou and BNP is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and BNP Paribas Easy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNP Paribas Easy 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 BNP Paribas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNP Paribas Easy has no effect on the direction of Manitou BF i.e., Manitou BF and BNP Paribas go up and down completely randomly.
Pair Corralation between Manitou BF and BNP Paribas
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the BNP Paribas. In addition to that, Manitou BF is 3.19 times more volatile than BNP Paribas Easy. It trades about -0.03 of its total potential returns per unit of risk. BNP Paribas Easy is currently generating about 0.12 per unit of volatility. If you would invest 17,120 in BNP Paribas Easy on September 4, 2024 and sell it today you would earn a total of 5,450 from holding BNP Paribas Easy or generate 31.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. BNP Paribas Easy
Performance |
| Timeline |
| Manitou BF SA |
| BNP Paribas Easy |
Manitou BF and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and BNP Paribas
The main advantage of trading using opposite Manitou BF and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, BNP Paribas 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 BNP Paribas will offset losses from the drop in BNP Paribas' long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| BNP Paribas vs. Amundi Index Solutions | BNP Paribas vs. Manitou BF SA | BNP Paribas vs. 21Shares Polkadot ETP | BNP Paribas 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stocks Directory Find actively traded stocks across global markets |