Correlation Between Manitou BF and Lumibird
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Lumibird 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 Lumibird 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 Lumibird SA, you can compare the effects of market volatilities on Manitou BF and Lumibird 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 Lumibird. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Lumibird.
Diversification Opportunities for Manitou BF and Lumibird
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Manitou and Lumibird is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Lumibird SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lumibird 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 Lumibird. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lumibird SA has no effect on the direction of Manitou BF i.e., Manitou BF and Lumibird go up and down completely randomly.
Pair Corralation between Manitou BF and Lumibird
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Lumibird. But the stock apears to be less risky and, when comparing its historical volatility, Manitou BF SA is 3.27 times less risky than Lumibird. The stock trades about -0.23 of its potential returns per unit of risk. The Lumibird SA is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 698.00 in Lumibird SA on September 1, 2024 and sell it today you would earn a total of 232.00 from holding Lumibird SA or generate 33.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Manitou BF SA vs. Lumibird SA
Performance |
| Timeline |
| Manitou BF SA |
| Lumibird SA |
Manitou BF and Lumibird Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Lumibird
The main advantage of trading using opposite Manitou BF and Lumibird positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Lumibird 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 Lumibird will offset losses from the drop in Lumibird's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Lumibird vs. Esker SA | Lumibird vs. Xilam Animation | Lumibird vs. Claranova SE | Lumibird vs. Prodways Group 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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