Correlation Between Manitou BF and Getlink SE
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Getlink SE 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 Getlink SE 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 Getlink SE, you can compare the effects of market volatilities on Manitou BF and Getlink SE 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 Getlink SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Getlink SE.
Diversification Opportunities for Manitou BF and Getlink SE
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Manitou and Getlink is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Getlink SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getlink SE 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 Getlink SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getlink SE has no effect on the direction of Manitou BF i.e., Manitou BF and Getlink SE go up and down completely randomly.
Pair Corralation between Manitou BF and Getlink SE
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Getlink SE. In addition to that, Manitou BF is 2.29 times more volatile than Getlink SE. It trades about -0.19 of its total potential returns per unit of risk. Getlink SE is currently generating about -0.08 per unit of volatility. If you would invest 1,602 in Getlink SE on August 30, 2024 and sell it today you would lose (49.00) from holding Getlink SE or give up 3.06% 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. Getlink SE
Performance |
| Timeline |
| Manitou BF SA |
| Getlink SE |
Manitou BF and Getlink SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Getlink SE
The main advantage of trading using opposite Manitou BF and Getlink SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Getlink SE 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 Getlink SE will offset losses from the drop in Getlink SE's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Getlink SE vs. Aeroports de Paris | Getlink SE vs. Eiffage SA | Getlink SE vs. Bureau Veritas SA | Getlink SE vs. Edenred 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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