Correlation Between Manitou BF and ZCCM Investments
Can any of the company-specific risk be diversified away by investing in both Manitou BF and ZCCM Investments 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 ZCCM Investments 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 ZCCM Investments Holdings, you can compare the effects of market volatilities on Manitou BF and ZCCM Investments 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 ZCCM Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and ZCCM Investments.
Diversification Opportunities for Manitou BF and ZCCM Investments
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manitou and ZCCM is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and ZCCM Investments Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZCCM Investments Holdings 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 ZCCM Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZCCM Investments Holdings has no effect on the direction of Manitou BF i.e., Manitou BF and ZCCM Investments go up and down completely randomly.
Pair Corralation between Manitou BF and ZCCM Investments
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the ZCCM Investments. But the stock apears to be less risky and, when comparing its historical volatility, Manitou BF SA is 1.67 times less risky than ZCCM Investments. The stock trades about -0.17 of its potential returns per unit of risk. The ZCCM Investments Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 150.00 in ZCCM Investments Holdings on September 1, 2024 and sell it today you would lose (10.00) from holding ZCCM Investments Holdings or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. ZCCM Investments Holdings
Performance |
| Timeline |
| Manitou BF SA |
| ZCCM Investments Holdings |
Manitou BF and ZCCM Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and ZCCM Investments
The main advantage of trading using opposite Manitou BF and ZCCM Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, ZCCM Investments 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 ZCCM Investments will offset losses from the drop in ZCCM Investments' long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| ZCCM Investments vs. TotalEnergies EP Gabon | ZCCM Investments vs. Robertet SA | ZCCM Investments vs. EPC Groupe |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |