Correlation Between Manitou BF and Amatheon Agri
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Amatheon Agri 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 Amatheon Agri 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 Amatheon Agri Holding, you can compare the effects of market volatilities on Manitou BF and Amatheon Agri 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 Amatheon Agri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Amatheon Agri.
Diversification Opportunities for Manitou BF and Amatheon Agri
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Manitou and Amatheon is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Amatheon Agri Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amatheon Agri Holding 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 Amatheon Agri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amatheon Agri Holding has no effect on the direction of Manitou BF i.e., Manitou BF and Amatheon Agri go up and down completely randomly.
Pair Corralation between Manitou BF and Amatheon Agri
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Amatheon Agri. But the stock apears to be less risky and, when comparing its historical volatility, Manitou BF SA is 5.11 times less risky than Amatheon Agri. The stock trades about -0.02 of its potential returns per unit of risk. The Amatheon Agri Holding is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 9.70 in Amatheon Agri Holding on September 12, 2024 and sell it today you would lose (7.55) from holding Amatheon Agri Holding or give up 77.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Manitou BF SA vs. Amatheon Agri Holding
Performance |
| Timeline |
| Manitou BF SA |
| Amatheon Agri Holding |
Manitou BF and Amatheon Agri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Amatheon Agri
The main advantage of trading using opposite Manitou BF and Amatheon Agri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Amatheon Agri 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 Amatheon Agri will offset losses from the drop in Amatheon Agri's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Amatheon Agri vs. Agrogeneration | Amatheon Agri vs. Delfingen | Amatheon Agri vs. ST Dupont | Amatheon Agri vs. Burelle 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 Stocks Directory module to find actively traded stocks across global markets.
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