Correlation Between Manitou BF and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Amundi ETF 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 Amundi ETF 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 Amundi ETF PEA, you can compare the effects of market volatilities on Manitou BF and Amundi ETF 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 Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Amundi ETF.
Diversification Opportunities for Manitou BF and Amundi ETF
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manitou and Amundi is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Amundi ETF PEA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi ETF PEA 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 Amundi ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi ETF PEA has no effect on the direction of Manitou BF i.e., Manitou BF and Amundi ETF go up and down completely randomly.
Pair Corralation between Manitou BF and Amundi ETF
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Amundi ETF. In addition to that, Manitou BF is 1.68 times more volatile than Amundi ETF PEA. It trades about -0.28 of its total potential returns per unit of risk. Amundi ETF PEA is currently generating about 0.4 per unit of volatility. If you would invest 4,310 in Amundi ETF PEA on September 3, 2024 and sell it today you would earn a total of 389.00 from holding Amundi ETF PEA or generate 9.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. Amundi ETF PEA
Performance |
| Timeline |
| Manitou BF SA |
| Amundi ETF PEA |
Manitou BF and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Amundi ETF
The main advantage of trading using opposite Manitou BF and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Amundi ETF 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 Amundi ETF will offset losses from the drop in Amundi ETF's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Amundi ETF vs. Amundi ETF PEA | Amundi ETF vs. Amundi ETF PEA | Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi ETF PEA |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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