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 FTSE, 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
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Manitou and Lyxor is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Lyxor UCITS FTSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS FTSE 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 FTSE 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 generate 2.12 times more return on investment than Lyxor UCITS. However, Manitou BF is 2.12 times more volatile than Lyxor UCITS FTSE. It trades about -0.07 of its potential returns per unit of risk. Lyxor UCITS FTSE is currently generating about -0.27 per unit of risk. If you would invest 1,666 in Manitou BF SA on August 24, 2024 and sell it today you would lose (62.00) from holding Manitou BF SA or give up 3.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. Lyxor UCITS FTSE
Performance |
| Timeline |
| Manitou BF SA |
| Lyxor UCITS FTSE |
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. Schneider Electric SE | Manitou BF vs. Publicis Groupe SA | Manitou BF vs. Pernod Ricard SA | Manitou BF vs. Compagnie Generale des |
| Lyxor UCITS vs. Amundi ETF MSCI | Lyxor UCITS vs. Manitou BF SA | Lyxor UCITS vs. Ossiam Minimum Variance | Lyxor UCITS vs. Granite 3x LVMH |
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..
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |