Correlation Between Manitou BF and Speed Rabbit
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Speed Rabbit 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 Speed Rabbit 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 Speed Rabbit Pizza, you can compare the effects of market volatilities on Manitou BF and Speed Rabbit 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 Speed Rabbit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Speed Rabbit.
Diversification Opportunities for Manitou BF and Speed Rabbit
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Manitou and Speed is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Speed Rabbit Pizza in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Speed Rabbit Pizza 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 Speed Rabbit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Speed Rabbit Pizza has no effect on the direction of Manitou BF i.e., Manitou BF and Speed Rabbit go up and down completely randomly.
Pair Corralation between Manitou BF and Speed Rabbit
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Speed Rabbit. But the stock apears to be less risky and, when comparing its historical volatility, Manitou BF SA is 1.26 times less risky than Speed Rabbit. The stock trades about -0.13 of its potential returns per unit of risk. The Speed Rabbit Pizza is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 540.00 in Speed Rabbit Pizza on August 31, 2024 and sell it today you would lose (15.00) from holding Speed Rabbit Pizza or give up 2.78% 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. Speed Rabbit Pizza
Performance |
| Timeline |
| Manitou BF SA |
| Speed Rabbit Pizza |
Manitou BF and Speed Rabbit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Speed Rabbit
The main advantage of trading using opposite Manitou BF and Speed Rabbit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Speed Rabbit 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 Speed Rabbit will offset losses from the drop in Speed Rabbit's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Speed Rabbit vs. Onlineformapro SA | Speed Rabbit vs. STMicroelectronics NV | Speed Rabbit vs. Sogeclair SA | Speed Rabbit vs. Diagnostic Medical Systems |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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