Correlation Between Manitou BF and Linedata Services
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Linedata Services 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 Linedata Services 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 Linedata Services SA, you can compare the effects of market volatilities on Manitou BF and Linedata Services 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 Linedata Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Linedata Services.
Diversification Opportunities for Manitou BF and Linedata Services
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Manitou and Linedata is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Linedata Services SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linedata Services 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 Linedata Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linedata Services has no effect on the direction of Manitou BF i.e., Manitou BF and Linedata Services go up and down completely randomly.
Pair Corralation between Manitou BF and Linedata Services
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Linedata Services. In addition to that, Manitou BF is 1.14 times more volatile than Linedata Services SA. It trades about -0.06 of its total potential returns per unit of risk. Linedata Services SA is currently generating about 0.04 per unit of volatility. If you would invest 7,042 in Linedata Services SA on September 1, 2024 and sell it today you would earn a total of 958.00 from holding Linedata Services SA or generate 13.6% 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. Linedata Services SA
Performance |
| Timeline |
| Manitou BF SA |
| Linedata Services |
Manitou BF and Linedata Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Linedata Services
The main advantage of trading using opposite Manitou BF and Linedata Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Linedata Services 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 Linedata Services will offset losses from the drop in Linedata Services' long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Linedata Services vs. Sword Group SE | Linedata Services vs. Lectra SA | Linedata Services vs. Neurones | Linedata Services vs. Aubay Socit Anonyme |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |