Correlation Between Manitou BF and Maat Pharma
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Maat Pharma 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 Maat Pharma 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 Maat Pharma SA, you can compare the effects of market volatilities on Manitou BF and Maat Pharma 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 Maat Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Maat Pharma.
Diversification Opportunities for Manitou BF and Maat Pharma
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manitou and Maat is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Maat Pharma SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maat Pharma 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 Maat Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maat Pharma SA has no effect on the direction of Manitou BF i.e., Manitou BF and Maat Pharma go up and down completely randomly.
Pair Corralation between Manitou BF and Maat Pharma
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Maat Pharma. In addition to that, Manitou BF is 1.07 times more volatile than Maat Pharma SA. It trades about -0.13 of its total potential returns per unit of risk. Maat Pharma SA is currently generating about 0.08 per unit of volatility. If you would invest 730.00 in Maat Pharma SA on August 30, 2024 and sell it today you would earn a total of 66.00 from holding Maat Pharma SA or generate 9.04% 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. Maat Pharma SA
Performance |
| Timeline |
| Manitou BF SA |
| Maat Pharma SA |
Manitou BF and Maat Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Maat Pharma
The main advantage of trading using opposite Manitou BF and Maat Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Maat Pharma 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 Maat Pharma will offset losses from the drop in Maat Pharma's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Maat Pharma vs. OSE Pharma SA | Maat Pharma vs. Abivax SA | Maat Pharma vs. Acticor Biotech SAS | Maat Pharma vs. Waga Energy 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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