Correlation Between Manitou BF and HSBC MSCI
Can any of the company-specific risk be diversified away by investing in both Manitou BF and HSBC MSCI 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 HSBC MSCI 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 HSBC MSCI Japan, you can compare the effects of market volatilities on Manitou BF and HSBC MSCI 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 HSBC MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and HSBC MSCI.
Diversification Opportunities for Manitou BF and HSBC MSCI
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Manitou and HSBC is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and HSBC MSCI Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC MSCI Japan 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 HSBC MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC MSCI Japan has no effect on the direction of Manitou BF i.e., Manitou BF and HSBC MSCI go up and down completely randomly.
Pair Corralation between Manitou BF and HSBC MSCI
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the HSBC MSCI. In addition to that, Manitou BF is 1.99 times more volatile than HSBC MSCI Japan. It trades about -0.05 of its total potential returns per unit of risk. HSBC MSCI Japan is currently generating about 0.06 per unit of volatility. If you would invest 3,297 in HSBC MSCI Japan on September 2, 2024 and sell it today you would earn a total of 515.00 from holding HSBC MSCI Japan or generate 15.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Manitou BF SA vs. HSBC MSCI Japan
Performance |
| Timeline |
| Manitou BF SA |
| HSBC MSCI Japan |
Manitou BF and HSBC MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and HSBC MSCI
The main advantage of trading using opposite Manitou BF and HSBC MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, HSBC MSCI 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 HSBC MSCI will offset losses from the drop in HSBC MSCI's long position.| Manitou BF vs. Air Liquide SA | Manitou BF vs. Vinci SA | Manitou BF vs. LOreal SA | Manitou BF vs. Compagnie de Saint Gobain |
| HSBC MSCI vs. HSBC MSCI China | HSBC MSCI vs. HSBC Emerging Market | HSBC MSCI vs. HSBC USA Sustainable | HSBC MSCI vs. HSBC MUCPAB ETF |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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