Correlation Between Manitou BF and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Lyxor UCITS 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 Lyxor UCITS 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 Lyxor UCITS Daily, you can compare the effects of market volatilities on Manitou BF and Lyxor UCITS 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 Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Lyxor UCITS.
Diversification Opportunities for Manitou BF and Lyxor UCITS
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Manitou and Lyxor is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Lyxor UCITS Daily in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS Daily 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 Lyxor UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor UCITS Daily has no effect on the direction of Manitou BF i.e., Manitou BF and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Manitou BF and Lyxor UCITS
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Lyxor UCITS. In addition to that, Manitou BF is 1.08 times more volatile than Lyxor UCITS Daily. It trades about -0.11 of its total potential returns per unit of risk. Lyxor UCITS Daily is currently generating about -0.08 per unit of volatility. If you would invest 3,807 in Lyxor UCITS Daily on September 3, 2024 and sell it today you would lose (386.00) from holding Lyxor UCITS Daily or give up 10.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. Lyxor UCITS Daily
Performance |
| Timeline |
| Manitou BF SA |
| Lyxor UCITS Daily |
Manitou BF and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Lyxor UCITS
The main advantage of trading using opposite Manitou BF and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Lyxor UCITS 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 Lyxor UCITS will offset losses from the drop in Lyxor UCITS's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Lyxor UCITS vs. Amundi Index Solutions | Lyxor UCITS vs. Amundi Index Solutions | Lyxor UCITS vs. Manitou BF SA | Lyxor UCITS vs. Ossiam Minimum Variance |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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